smLsmlisuzu.com/Upload/AgmNotice/902bf15f_2ae52738_Voting Result… · (DIN 02704734), Managing Director & CEO, in atAGM case of no profits / inadequate profits 11. Approval for payment

Dy. General Manager- The Secretary

' smL ISU2U

SMUSEC/2018 131h August, 2018

Corporate Relationship Department National Stock Exchange of India Ltd. SSE Limited Exchange Plaza, 5th Floor P J Towers, Dalal Street, Fort Plot No. C/1, G Block Mumbai 400 001 Sandra - Kurla Complex

Sandra (East), Mumbai 400 051

Scrip Code: 505192 Scrip Code: SMLISUZU

Subject : Outcome of 34th Annual General Meeting

Dear Sir,

This is to inform you that the 34th Annual General Meeting (AGM) of SML ISUZU LIMITED (CIN L50101PB1983PLC005516) was held on Thursday, 9th August, 2018 PM at its Registered Office at Village Asron, District Shahid Bhagat Singh Nagar (Nawanshahr) , Punjab 144 533.

In this regard , please find enclosed the following:

(a) Voting results as required under Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

(b) Consolidated report of Scrutinizer on remote e-voting and voting at AGM through ballot paper dated 131h August, 2018.

(c) Annual Report for the financial year 2017-18 as required under Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 duly approved and adopted by the members as per provisions of the Companies Act, 2013.

(d) Amended Memorandum of Association and new Articles of Association of the Company duly approved by the members as per provisions of the Companies Act, 2013.

This is for your information and record please.

Thanking you,

Yours faithfully For SML ISUZU LIMITED

6:.~~ (PARVESH MADAN) Company Secretary ACS-31266 [email protected]

SML ISUZU Limited Corporate Office: 204-205, Sector 34-A, Chandigarh - 160135

1 +911722647700-10 F +91172 2615111

Regd. Office & Works :

Village : Asron, Di stt. Shahid Bhagat Singh Nagar [Nawanshahar] Punjab - 144533

T +911881 270255 F +91 1881 270223 W www.smlisuzu.com CIN L50101 PB 1983PLC005516

Trucks & Buses

smL ISU2U

Details of Resolutions passed at 34th Annual General Meeting of SML ISUZU LIMITED

Date of the AGM 9th August, 2018 (Thursday) Total number of shareholders on record date 34,531 (i.e 2nd August, 2018) No. of shareholders present in the meeting either in person or through proxy:

• Promoters and promoter group 1 • Public 41

No. of shareholders attended the meeting This facility was not provided through video conferencing:

• Promoters and promoter group • Public

Agenda-wise

Item Agenda Resolution Mode of Remarks no. required voting

(Ordinary/ (E-Voting/ Special) Ballot

Paper) ORDINARY BUSINESS

1 To receive, consider and adopt the audited Ordinary E-Voting & Passed with financial statements of the Company for the Ballot Paper Requisite Majority financial year ended 31st March 2018 and the atAGM reports of the Board of Directors and Auditors thereon.

2 To declare dividend on equity shares. Ordinary E-Voting & Passed with (Rs. 1.50 per share) Ballot Paper Requisite Majority

atAGM

3 To appoint a Director in place of Mr. Takeru Ordinary E-Voting & Passed with Kikkawa (DIN 03107280), who retires by Ballot Paper Requisite Majority rotation and being eligible, offers himself for a~AGM

re-appointment. 4 To appoint a Director in place of Mr. Pankaj Ordinary E-Voting & Passed with

Bajaj (DIN 00337925), who retires by rotation Ballot Paper Requisite Majority and being eligible, offers himself for re- atAGM appointment.

5 To fix remuneration of Statutory Auditors, Ordinary E-Voting & Passed with B S R & Associates LLP Ballot Paper Requisite Majority

atAGM

~SML ISUZU LIMITED

(~~L~-----(PAP.': :.~: r MADAN) ColT'pany Sec•atary & Compliance Officer ACS-31266

Trucks & Buses

Item Agenda Resolution Mode of no. required voting

(Ordinary/ (E-Voting/ Special) Ballot

Paper) SPECIAL BUSINESS

6. Appointment of Mr. Go ta Iwanami Ordinary E-Voting & (DIN 08094102) as Director liable to retire by Ballot Paper rotation atAGM

7. Appointment of Mr. Masaki Morohoshi Ordinary E-Voting & (DIN 07302404), as Director liable to retire by Ballot Paper rotation atAGM

8. Continuation of appointment of Mr. P.K. Nanda Special E-Voting & (DIN 00751931) as an Independent Director Ballot Paper

atAGM

9. Continuation of appointment of Mr. A.K. Special E-Voting & Thakur (DIN 00031778) as an Independent Ballot Paper Director atAGM

10. Approval for payment of minimum Special E-Voting & remuneration to Mr. Eiichi Seto Ballot Paper (DIN 02704734), Managing Director & CEO, in atAGM case of no profits / inadequate profits

11. Approval for payment of minimum Special E-Voting & remuneration to Mr. Gopal Bansal Ballot Paper (DIN 06836592), Whole-time Director & CFO, atAGM in case of no profits/ inadequate profits

12. Appointment of Mr. Yugo Hashimoto Ordinary E-Voting & (DIN 08165797) as Director Ballot paper

atAGM

13. Appointment of Mr. Yugo Hashimoto Special E-Voting & (DIN 08165797) as Managing Director & Chief Ballot Paper Executive Officer atAGM .

14. Alteration of Memorandum of Association of Special E-Voting & the Company Ballot Paper

atAGM

15. Adoption of new Articles of Association of the Special E-Voting & Company Ballot Paper

atAGM

F~ML ISUZU LIMITED

~t<l_ ~'-1

smL ISU2U

Remarks

Passed with Requisite Majority










(PARVESH MADAN) Company Secretary & Compliance Officer ACS-31266

Trucks & Buses

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Date of AGM 9th August, 201R

Record Date 2nd August, 2018

Total number of shareholders on record date 34,531

No. of shareholders present in the meeting either in person or through proxy:

Promoter and Promoter Group: 1

Public: 41 No. of Shareholders attended the meeting through Video Conferencing: This facility was not provided

Promoter and Promoter Group:

Public:

(Agenda wise)

1 To receive, consider and adopt the audited financial statements of the Company for the financial year ended 31st March 2018 and the reports of the Board of Directors and Auditors thereon.

Resolution required : (Ordinary I Special) Ordinary

Whether promoter I promoter group are interested in the agenda I resolution? No

Category Mode of Voting No.of No. of Votes % of Votes Polled shares Held Polled on Outstanding

shares

(1) (2) {3)=[{2)/(1})*100

E-Voting 6362306 100.00

Promoter & Promoter Group Poll

6362306 0 0.00

Postal Ballot (if applicable) NA NA

Total 6362306 100.00

E-Voting 1154810 93.15

Public-Institutions Poll

1239707 0 0.00


Total 1154810 93.15

E-Voting 2293345 33.38

Public-Non Institutions Pell

6869633 1000 0.01


Total 2294345 33.40

Total 14471646 9811461 67.80

The Resolution was passed with requisite majority.

No. of votes in favour

(4)

6362306

0

NA

6362306

1154810

0

NA

1154810

2292880

1000

NA

2293880

9810996

No. of % of Votes in % of Votes against votes- favour on votes on votes Polled against Polled

(S) (6)=[(4)/(2))*100 {7)=[(S)/(2})*100

0 100.000

0 0.000

NA NA

0 100.000

0 100.000

0 0.000

NA NA

0 100.000

465 99.980

0 100.000

NA NA

465 99.980

465 99.995

Fo~L ISUZU LIMITED

~. '\Y\__ci_ "'"'!,~ (PARVESH MADAN) Company Sec•etary & Compliance Officer ACS-31266

0.000

0.000

NA

0.000

0.000

0.000

NA

0.000

0.020

0.000

NA

0.020

0.005

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2 To declare dividend on equity shares.

Resolution required: (Ordinary/ Special) Whether promoter I promoter group are interested in the agenda I resolution?

Category Mode of Voting No. of

shares Held

(1)

E-Voting


6362306 Postal Ballot (if applicable)

Total . E-Voting



Total

E-Voting

Public-Non Institutions Poll


Total

Total 14471646


Ordinary

No No. of Votes % of Votes Polled

Polled on Outstanding

shares

(2) (3)=[(2)/(1)]*100

636230E 100.00

0 0.00

NA NA

6362306 100.00

1154810 93.15

0 0.00

NA NA

1154810 93.15

2293350 33.38

1000 0.01

NA NA

2294350 33.40

9811466 67.80


(4)

6362306

0

NA

6362306

1154810

0

NA

1154810

2293335

1000

NA

2294335

9811451


(5) (6)=[(4)/(2)]*100 (7)=[(5)/(2)]*100

,..

0 100.000

0 0.000

NA NA

0 100.000

0 100.000

0 0.000

NA NA

0 100.000

15 99.999

0 100.000

NA NA

15 99.999

15 100.000

For~ML ISUZU LIMITED

c\. \'<\~"'--., (PARVE'SH MADAN) Company Secretary & Compliance Officer ACS-31 266

0.000

0.000

NA

0.000

0.000

0.000

NA

0.000

0.001

0.000

NA

0.001

0.000

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3 To appoint a Director in place of Mr. Takeru Kikkawa (DIN 03107280), who retires by rotation and being eligible, offers himself for re-appointment.

Resolution required: (Ordinary I Special) Ordinary

Whether promoter I promoter group are interested in the agenda I resolution? Yes

Category Mode of Voting No. of No. of Votes % of Votes Polled

shares Held Polled on Outstanding

shares

(1) (2) (3)=[(2)/(1)]*100

E-Voting 6362306 100.00


6362306 0 0.00


Total 6362306 100.00

E-Voting 1154810 93.15


1239707 0 0.00


Total 1154810 93.15

E-Voting 2293290 33.38


6869633 1000 0.00


Total 2294290 33.40

Total 14471646 9811406 67.80


No. of votes No. of % of Votes in % of Votes against

in favour votes- favour on votes on votes Polled

against Polled

(4) (5) (6)=((4)/(2)]*100 (7)=[(5)/(2)]*100

6362306 0 100.000 0.000

0 0 0 .000 0.000

NA NA NA NA

6362306 0 100.000 0.000

1103909 50901 95.592 4.408

0 0 0.000 0.000

NA NA NA NA

1103909 50901 95.592 4.408

229323C 60 99.997 0.003

1000 0 0.000 0.000

NA NA NA NA

2294230 60 99.997 0.003

9760445 50961 99.481 0.519

,--- ~

f For~L ISUZU LIMITED

(t~=--~ (PARVESH MADA \I) Company Sec·etary & Compliance Officer ACS-31266

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4 To appoint a Director in place of Mr. Pankaj Bajaj (DIN 00337925), who retires by rotation and being eligible, offers himself for re-appointment.

Resolution required: (Ordinary I Special) Ordinary

Whether promoter I promoter group are interested in the agenda I resolution? Yes Category Mode of Voting No. of No. of Votes % of Votes Polled


shares

(1) (2) (3)=[(2)/(1)]*100

E-Voting 6362306 100.00


6362306 0 0.00


Total 6362306 100.00

E-Voti~ 1154810 93.15


1239707 0 0.00


Total 1154810 93.15

E-Voting 229332C 33.38


6869633 1000 0.01


Total 2294320 33.40 Total 1447164E 9811436 67.80


t

No. of votes No. of % of Votes in % of Votes against in favour votes- favour on votes on votes Polled

against Polled

(4) (S) (6)=[(4)/(2))•100 (7)=[(5)/(2)]*100

6362306 0 100.000 0.000

0 0 0.000 0.000

NA NA NA NA

6362306 0 100.000 0.000

1103909 50901 95.592 4.408

0 0 0.000 0.000

NA NA NA NA

1103909 50901 95.592 4.408

2293155 165 99.993 0.007

1000 0 0 .000 0.000

NA NA NA NA

2294155 165 99.993 0.007 9760370 51066 99.480 0.520

,.-- ~

For~L ISUZU LIMITED

~~~ (PARVESH MADAN) Company Secretary & Compliance Officer ACS-31266

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5 To fix remuneration of Statutory Auditors, BS R & Associates LLP

Resolution required: (Ordinary I Special) Whether promoter I promoter group are interested in the agenda I resolution? Category Mode of Voting No. of

shares Held

(1)

E-Voting



Total

E-Voting



Total

E-Voting



Total

Total 14471646


Ordinary No

No. of Votes % of Votes Polled

Polled on Outstanding shares

(2) (3)=[(2)/(1)]*100

6362306 100.00

0 0.00

NA NA

6362306 100.00

1154810 93.15

0 0.00

NA NA

1154810 93.15

2293300 33.38

1000 0.01

NA NA

2294300 33.40

9811416 67.80


(4)

6362306

0

NA

6362306

115481(

0

NA

1154810

2293285

1000

NA

2294285

9811401


(5) (6)=((41/(2)]*100 (7)=[(5)/(2))*100

,.....-

0 100.000

0 0.000

NA NA

0 100.000

0 100.000

0 0.000

NA NA

0 100.000

15 99.999

0 0.000

NA NA

15 99.999 15 100.000

Fot L ISUZU LIMITED

~ ·~~'----'. (PARVE5r' MADAN) Company Secretary & Compliance Officer ACS-31266

0.000

0.000

NA

0.000

0.000

0.000

NA

0.000

0.001

0 .000

NA

0.001 0.000

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6 Appointment of Mr. Gota lwanami (DIN 08094102) as Director liable to retire by rotation

Resolution required: (Ordinary I Special)

Whether promoter I promoter group are interested in the agenda I resolution? Category Mode of Voting No. of No. of Votes

shares Held Polled

(1) (2)

E-Voting 6362306


6362306 0

Postal Ballot (if applicable) NA

Total 6362306 . E-Voting 1154810


1239707 0


Total 1154810

E-Voting 2293320


6869633 1000


Total 2294320 Total 14471646 9811436


Ordinary

Yes % of Votes Polled on Outstanding

shares

(3)=[(2)/(1))*100

100.00

0.00

NA

100.00

93.15

0.00

NA

93.15

33.38

0.01

NA

33.40 67.80


(4)

6362306

0

NA

6362306

1103909

0

NA

1103909

2293280

1000

NA

2294280 9760495


(5) (6)=[(4)/(2))*100 (7)=[(5)/(2))*100

0 100.000 0.000

0 0.000 0.000

NA NA NA

0 100.000 0.000

50901 95.592 4.408

0 0.000 0.000

NA NA NA

50901 95.592 4.408

40 99.998 0.002

0 0.000 0.000

NA NA NA

40 99.998 0.002 50941 99.481 0.519

For SML ISUZU LIMITED

'~~~ (PARVESH MADAN) Company Secretary & Compliance Officer ACS-31266

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7 Appointment of Mr. Masaki Morohoshi (DIN 07302404), as Director liable to retire by rotation

Resolution required: (Ordinary I Special) Whether promoter/ promoter group are interested in the agenda/ resolution? Category Mode of Voting No. of No. of Votes

shares Held Polled

(1) (2)

E-Voting 6362306


6362306 0


Total 6362306

E-Votillg 1154810


1239707 0


Total 1154810

E-Voting 2293320


6869633 1000


Total 2294320

Total 1447164E 9811436


Ordinary

Yes % of Votes Polled

on Outstanding

shares

(3)=[(2)/(1))*100

100.00

0.00

NA

100.00

93.15

0.00

NA

93.15

33.38

0.01

NA

33.40

67.80


against Polled

(4) (S} (6}=[(4)/(2}]*100 (7)=((51/(2))*100

6362306 0 100.000 0.000

0 0 0.000 0.000

NA NA NA NA

6362306 0 100.000 0.000

1154810 100.000 0.000

0 0 0.000 0.000

NA NA NA NA

1154810 0 100.000 0.000

2293280 40 99.998 0.002

1000 0 100.000 0.000

NA NA NA

2294280 40 99.998 0.002 9811396 40 100.000 0.000

,.-Fo\)ML ISUZU LIMITED

(\~~q_~

1

(PARVESr" MADAN) Company Sec•etary & Compliance Officer ACS-31266

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8 Continuation of appointment of Mr. P.K. Nanda (DIN 00751931) as an Independent Director


Whether promoter I promoter group are interested in the agenda I resolution? Category Mode of Voting No. of No. of Votes

shares Held Polled

(1) (2)

E-Voting 6362306


6362306 0


Total 6362306

E-Voting 1154810


1239707 0


Total 1154810

E-Voting 2293210


6869633 1000


Total 2294210

Total 14471646 9811326


Special

No % of Votes Polled on Outstanding

shares

(3)=[(2)/(1)]*100

100.00

0.00

NA

100.00

93.15

0.00

NA

93.15

33.38

0.01

NA

33.40

67.80


against Polled

(4) (5) (6}=[(4}/(2}]*100 (7)=[(5 )/(2)] •100

6362306 0 100.000 0.000

0 0 0.000 0.000

NA NA NA NA

6362306 0 100.000 0.000

505047 649763 43.734 56.266

0 0 0.000 0.000

NA NA NA NA

505047 649763 43.734 56.266

2293170 40 99.998 0.002

1000 0 100.000 0.000

NA NA NA NA

2294170 40 99.998 0.002 9161523 649803 93.377 6.623

f F~ML ISUZU LIMITE~ ~ \--C\a-_ ~ ~

(P; ~:· :: Sr' MADAN) COIT' o.:i 1y Secretary & Compliance Officer ACS-31266

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9 Continuation of appointment of Mr. A.K. Thakur (DIN 00031778) as an Independent Director

Resolution required: (Ordinary I Special) Whether promoter/ promoter group are interested in the agenda I resolution?

Category Mode of Voting No. of No. of Votes

shares Held Polled

{1) (2)

E-Voting 6362306


6362306 0


Total 6362306

E-Votirig 1154810


1239707 0


Total 1154810

E-Voting 2293290


6869633 1000


Total 2294290

Total 14471646 9811406


Special No % of Votes Polled

on Outstanding

shares

{3)=[(2)/(1)]*100

100.00

0.00

NA

100.00

93.15

0.00

NA

93.15

33.38

0.01

NA

33.40

67.80

No. of votes

in favour

(4)

6362306

0

NA

6362306

505047

0

NA

505047

2293225

1000

NA

2294225

9161578

No. of % of Votes in % of Votes against

votes- favour on votes on votes Polled

against Polled

(5) (6)=[{4)/(2)]*100 (7)=[{5)/(2))*100

0 100.000

0 0.000

NA NA

0 100.000

649763 43.734

0 0.000

NA NA

649763 43.734

65 99.997

0 100.000

NA NA

65 99.997

649828 93.377

F~ML ISUZU LiMITED

~-~=-~~ (PARVESH MADAN) Company Secretary & Compliance Officer ACS-31266

0.000

0.000

NA

0.000

56.266

0.000

NA

56.266

0.003

0.000

NA

0.003

6.623

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10 Approval for payment of minimum remuneration to Mr. Eiichi Seto (DIN 02704734), Managing Director & CEO, in case of no profits I inadequate profits

Resolution required : (Ordinary I Special) Special

Whether promoter/ promoter group are interested in the agenda/ resolution? No



shares

(1) (2) (3)=[(2)/(1))*100

E-'Joting 6362306 100.00


6362306 0 0.00


Total 6362306 100.00

E-Voting 1154810 93.15


1239707 0 0.00


Total 1154810 93.15

E-Voting 2293315 33.38


6869633 1000 0.01


Total 2294315 33.40

Total 14471646 9811431 67.80



(4)

6362306

0

NA

6362306

1000802

0

NA

1000802

2292719

1000

NA

2293719 9656827

No. of % of Votes in % of Votes against votes- favour on votes on votes Polled

against Polled

(S) (6)=[(4)/(2))*100 (7)=[(5)/(2))*100

0 100.000 0.000

0 0.000 0.000

NA NA NA

0 100.000 0.000

154008 86.664 13.336

0 0.000 0.000

NA NA NA

154008 86.664 13.336

596 99.974 0.026

0 100.000 0.000

NA NA NA

596 99.974 0.026 154604 98.424 1.576

,- --,

' Fo~L IS IJZU LIMITED

~'M_c:x~, (PARVESH MADAN) Company Sec•etary & Compliance Officer ACS-31266

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11 Approval for payment of minimum remuneration to Mr. Gopal Bansal (DIN 06836592), Whole-time Director & CFO, in case of no profits/ inadequate profits

Resolution required: (Ordinary/ Special) Special

Whether promoter I promoter group are interested in the agenda I resolution? No



shares

(1) (2) (3 )=[(2)/(1)] •100

E·Voting 6362306 100.00


6362306 0 0.00


Total • 6362306 100.00

E-Voting 115481C 93.15


1239707 0 0.00


Total 1154810 93.15

E-Voting 2293275 33.38


6869633 1000 0.01


Total 2294275 33.40 Total 14471646 9811391 67.80


No. of votes

in favour

(4)

6362306

0

NA

6362306

1000802

0

NA

1000802

2292679

1000

NA

2293679 9656787


against Polled

(5) (6)=[(4)/(2)]*100 (7)=[(5)/(2)]*100

0 100.000

0 0.000

NA NA

0 100.000

154008 86.664

0 0.000

NA NA

154008 86.664

596 99.974

0 100.000

NA NA

596 99.974

154604 98.424

' For~ML ISUZU LIMITED

ct~~ (PM~' ':-Sr! MADAN) Co11"pany Secretary & Compliance Officer ACS-31266

0.000

0.000

NA

0.000

13.336

0.000

NA

13.336

0 .026

0.000

NA

0.026

1.576

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12 Appointment of Mr. Yugo Hashimoto (DIN 08165797) as Director

Resolution required: (Ordinary/ Special)

Whether promoter I promoter group are interested in the agenda I resolution? Category Mode of Voting No. of

shares Held

(1)

E-Voting



Total

E-Votin·g



Total

E-Voting



Total Total 14471646


Ordinary

Yes No. of Votes % of Votes Polled Polled on Outstanding

shares

(2) (3 )=((2)/(1)) •100

6362306 100.00

0 0.00

NA NA

6362306 100.00

1154810 93.15

0 0.00

NA NA

1154810 93.15

2293285 33.38

1000 0.01

NA NA

2294285 33.40 9811401 67.80


(4)

6362306

0

NA

6362306

1103909

0

NA

1103909

2293270

1000

NA

2294270 9760485


(5) (6)=[(4)/(2))*100 (7)=[(5)/(2)]*100

0 100.000 0.000

0 0.000 0.000

NA NA NA

0 100.000 0.000

50901 95.592 4.408

0 0.000 0.000

NA NA NA

50901 95.592 4.408

15 99.999 0.001

0 100.000 0.000

NA NA NA

15 99.999 0.001 50916 99.481 0.519

f F~ SML ISUZU LIMITED

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(PARVESH MADAN) Company Secretary & Compliance Officer ACS-31266

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13 Appointment of Mr. Yugo Hashimoto (DIN 08165797) as Managing Director & Chief Executive Officer

Resolution required: (Ordinary/ Special) Whether promoter/ promoter group are interested in the agenda I resolution?

Category Mode of Voting No. of No. of Votes

shares Held Polled

(1) (2)

E-Voting 6362306


6362306 0


Total 6362306

E-Voting 1154810


1239707 0


Total 1154810

E-Voting 2293265


6869633 1000


Total 2294265

Total 14471646 9811381


Special

No % of Votes Polled on Outstanding

shares

(3)=[(2)/(1))*100

100.00

0.00

NA

100.00

93.15

0.00

NA

93.15

33.38

0.01

NA

33.40 67.80

No. of votes

in favour

(4)

6362306

0

NA

6362306

1103909

0

NA

1103909

2293250

1000

NA

2294250

9760465


against Polled

(5) (6)=[{4)/{2))*100 (7)=[{5)/{2)]*100

0 100.000 0.000

0 0.000 0.000

NA NA NA

0 100.000 0.000

50901 95.592 4.408

0 0.000 0.000

NA NA NA

50901 95.592 4.408

15 99.999 0.001

0 100.000 0.000

NA NA NA

15 99.999 0.001 50916 99.481 0.519

/Fo~ML ISUZU L;MITED ~ <'t:~\o.~

(PARVESH MADAN) Company Sec•etary & Compliance Officer ACS-31266

iii Ill c3 ~i

:;-i c n """' Ill

!20 CD c Ill ct> Ill

14 Alteration of Memorandum of Association of the Company

Resolution required: (Ordinary I Special) Whether promoter I promoter group are interested in the agenda I resolution?

Category Mode of Voting No. of

shares Held

(1)

E-Voting



Total

E-Votin'g



Total

E-Voting



Total

Total 14471646


Special

No No. of Votes % of Votes Polled


shares

(2) (3)=[(2)/(1))*100

6362306 100.00

0 0.00

NA NA

6362306 100.00

1154810 93.15

0 0.00

NA NA

1154810 93.15

2293245 33.38

1000 0.01

NA NA

2294245 33.40 9811361 67.80

No. of votes

in favour

(4)

6362306

0

NA

6362306

1154810

0

NA

1154810

2293230

1000

NA

2294230 9811346


(5) (6)=[(4)/(2)]*100 (7)=[(5)/(2})*100

0 100.000

0 0.000

NA NA

0 100.000

0 100.00C

0 0.000

NA NA

0 100.000

15 99.999

0 100.000

NA NA

15 99.999 15 100.000

r-t Fo~ML ISUZU LIMITED

Cbt-<l~ (PARV~SH MADAN) Company Secretary & Compliance Officer ACS-31266

0.000

0.000

NA

0.000

0.000

0.000

NA

0.000

0.001

0.000

NA

0.001 0.000

iii Ill c3 ~r

--i -, c n 7'" Ul

Qo CD c Ul rt> Ul

15 Adoption of new Articles of Association of the Company


Whether promoter I promoter group are interested in the agenda I resolution? Category Mode of Voting No. of

shares Held

(1)

E-Voting



Total

E-Voting



Total

E-Voting



Total

Total 14471646


Special No

No. of Votes % of Votes Polled


shares

(2) (3)=[(2)/(1)]*100

6362306 . 100.00

0 0.00

NA NA

6362306 100.00

1154810 93.15

0 0.00

NA NA

1154810 93.15

2293320 33.38

1000 0.01

NA NA

2294320 33.40

9811436 67.80

No. of votes

in favour

(4)

6362306

0

NA

6362306

949901

0

NA

949901

2293305

1000

NA

2294305

9606512

No. of % of Votes in % of Votes against

votes- favour on votes on votes Polled against Polled

(5) (6)=[(4)/(2)]*100 (7)=[(5)/(2}1*100

0 100.000

0 0.000

NA NA

0 100.000

204909 82.256

0 0.000

NA NA

204909 82.256

15 99.999

0 100.000

NA NA

15 99.999 204924 97.911

,..-

For~ML ISUZU LIMITED

~t--<\__~ (PARVESH MADAN) Company Secretary & Compliance Officer ACS-31266

0.000

0.000

NA

0.000

17.744

0.000

NA

17.744

0.001

0.000

NA

0.001

2.089

I

iii Ill c:3 ~i

KANWALJIT SINGH B. Com., F.C.S.

Consolidated Report of Scrutinizer

GSTIN : 04ADNPT2219E1ZO S.C.O. 64-65, 1st Floor, Sector 17-A, Madhya Marg, Chandigarh - 160 017 Ph.: 0172-2701906 Mobile : +91-99153 43212 E-mail [email protected]

(Pursuant to section 108 of the Companies Act 2013 and Companies (Management and Administration) Rules, 2014 as arnendedj

·10

Tl1e Ch::iim1an,

SNIL lst.'U Limiwd

341to Annuul General Meeting of the Equity Shareholders of SIVIL Isuzu Limited held on

Tt1ursddy, the 9111 August, 2018 at 03.00 P.M. at the Registered Office & Works of the Co111pany at Village Asron, Distt. Shahiu Bhagat Singh Nagar (Nawanshahr), Punjab -144533.

Dear Sir

1. I, Kanwal11t Singh, Practicing Company Secretary, at S.C.O. 64-65, 1~1 Floor, Sactor 17 A,

Me1dhyC3 tvlarg . Chandigarh was appointed as Scrutinizer by the Board of Directors of SML lsuw Limited (the Company) for the purpose of scrut1niz1nn the e-voting process (remote evoting) and voting by use of ballot at the meeting pursuar1t to section 108 of the Companies Act, 2013 read with rLilc 20 & 21 of lhe Companies (Management and Administration) Rules, 20·14 c· s amended, 1n respect or the below ·ncntioried resolutions proposed al the 341

n

Annual General Mceling (AGM) of the Equity Shareholders of SML Isuzu Limited held on 9th

August , 2018 at 03 00 P M at the Registered Office & Works of the Cornpany al Village . As1on , 01stt. Shahid 13hagat Smgll Nagar (Nawanshahr) , Punjrib - 1ti4533.

2 The compliance willl the provisions of the Companies ,\ct, 2013 and the Rules made thef0under relating to voting through elec~ronic means (by remote c-voting) and volir.g by usiny ballots by the shareholde1 £ on the resolutions proposed in the Notice ot the 3.tl tti Annual Gene; al Meeting of I! .e Company 1s t!ie re~po11s1bility of the managernenl My

respo11sibil1ty a~. ~ S:;rulinizer 1s to ensure ihat the vo!llilJ proce::;s both through electronic

me<:!ns and by use of ballot at the meeting are conducted in a fair and transparent manner and render a consolidated scrutinizer's report of the total votes cast in favour or against, if any, to the Chairman on the resolutions, based on the reports generated from the electronic votmg system provided by National Securities Depository Limited (NSDL) and the report for voting by use of ballots at the meeting.

3 The Company had arranged the services of NSOL for extending the facility of remote evoting to the Members of the Company from 5tt• August, 2018 (from 9.00 A.M.} to 8th August, 20 18 (uplo t> 00 P.M.). The remote e-voting results were unblocked by me on 11th August, 2018 at 07.00 P.M due to glitch in the NSDL Evoting website in the presence of two witnesses.

4 At the 34lh AGM of the Company held on 9th August, 2018, the Chairman announced a Poll through Ballot to facilitate the Members present in the Meeting who have not exercised remote e-voting facility earlier, for exerci:>ing their right through the Ballot available at AGM venue

5 I have rendered Scrutinizer's Report sepurately on the remote e-voting and on use of ballots at the Meeting and I hereby submit Consolidated Report of Scrutinizer pursuant to Rule 20(4)(x1i) on all the resolutions contained in the Notice of the aforesaid AGM.

6. The e-voting cast by institulional shareholders who have not provided the related scanned copy of the relevant Board Resolution I Authority Letter to the Scrutinizer for exercising their

votes have been considered as invalid.

The consolidaled result5 of voting are as under:

ORDINARY BUSINESS:

(1) Ai, an Ordinary Resolution-Item no. 1

Adoption of Financial Statements, the reports of the Board of Directors and Auditors for the year

ended 31st March, 2018.

I Pa~liculnrs l Consolidntcd Details

of Valid Voles

~ ·1 otal No. I otal No or

I . of shares/ l _ Members ~!:_)tes_held

l Detail.£!_ voting _ 116 __ 981 ~· 1

% to total vahdl • votes .. _

Votes Cast in Favour

--~~-~

No. of No. of Members shares/

Votes 114 9810996

99.995% --

- VOtCSCast Against Invalid Votes

No. of No. of No. of No. of Members shares/V Membe shares/Vo

ot~- rs tes _2 __ 465 --Nil- Nil

0.005% - - -

I

(2) As an Ordin<lry Resolution-Item no. 2

Declaration of Dividend on Equity Shares.

solidated Details I Votes Cast in Favour Votes Cast Against Invalid Votes I f Valid Votes -No~ of - --No. of No. of No of I

Parti<:ulars -[_-~_: • Tota

0 INo. I Total N'OO'f'"' No. of f shares/ Members bor~ I ~oles held ____ Mcm

shares/ Votes

No. of Members sharesN Members sharesNo I

oles tes De~il oi_ioli"ng- 11 % to total valid votes

---6 9811466 115 9811451 1 15 Nil Nil -- ----- - -------- I

99.9998% 0.0002% I I - -----'

(3) As an Ordinary Resolution-Item no. 3

Re-appointment of Mr. Takeru Kikkawa (DIN 03107280) as Director, who retires by rotation.

ed Detail$". Par liculars - - consolidat of Valid

Total No of

Members

Votes Total No. of

shares/

~beta11 ofy~!!)g ____ 114 __ ·-=-votes held 9811406

% lo total valid votes

-Votes Cast in Favour

" No. of No. of

Members shares/ Votes

110 9760445

99.48%

4) As an Ordinary Resolution-Item no. 4

Votes Cast Against Invalid Votes

~NQ'Of - No-:-or -1------- ~--No. of No. of

Members sharesN Members sharesN otes otes

4 50961 - Nil Nil

0.52% -~- ·-

Re-appointment of Mr. Pankaj Bajaj (DIN 00337925) as Director. who retires by rotation.

I Particulars - r Votes Cast in Favour Votes Cast Against Invalid Votes

-~- ~--- ~

No. of No. ot No. or No. of No. of No. of

Consolidated Details of V-.lid Votes

Totn1 No. jTofa1N"o:Or Members shares/ Members sharcsN Members sharesNo

Votes oles tes - - - Nil Nil 109 9760370 6 51066

i of shares/ , Members votes held ' Detail o'f:otinn - 11 5 9811436 ' ~i2.

99.48% 0.52% -~--·--

.... _____ -~ - _...__._ ----l

l % lo total valid votes -- - - --


Fix remuneration of the Statutory Auditors, BS R & Associates LLP.

Par Liculars

Qet§1I of ~g!l_ng_ % to total valid

~ votus ~ __ __

--Cons

0

Total or

Memb 114

olidatcd Details f Valid Votes No. Total No. of

shares/ ers voles held - - 9811416

SPECIAL BUSINESS:


-No. of No. of

Members shares/ Votes

113 9811401 •··

99.9998%


Votes Cast Against

No. of No. of Members sharesN

otes 1 15

0.0002%

Inv

No. o Memb<~

Nil

alidVotes-

No. of rs sharesNo

tes Nil

Appointment of Mr Gola lwanami {DIN 08094102) as Director liable to retire by rotation.

_oel'a;t°of ~otmg _

l % to total valid votes

Details Consolidated or Valid V

Toli::!I No. I lo otcs tal No. of

Of I

Members I v

---~s -[" shares/ otes held 811436 ----


- No. or No. of Members shares/

Votes -112 9760495

99.48%


- Votes Cast

No. of Members

---3

t-

-

Against

No. of sharesN

oles 50941

052%

Invalid Votes

No. of- No. of Members sharesNo

tes Nil Nil

Appointment of Mr Masaki Morohoshi (DIN 07302404), as Director liable to retire by rotation.

I Particulars - ~Consolidated DetaiiS Votes of Valid Votes

T otal N~ Total No~( -;:JO, o I or 6 shares/ Membe I Me1t1bers votes held p:5etail ot volin"i"-4 11s ___ · ~11436- 113

o/, to total valid I J I votes _ _ _J _ _ ___ _

Cast in Favour - - -

Votes Cast Ag

f No. of No. of N rs shares/ Members sh

Votes 9811396 2

99.9996% 0.0 -

--ainst Invalid Votes

~o~ No. of No. of aresN Membl:rs sharesNo otes les -'4..:;..0 _ _..,_-'N_i_l Nil

004%

(

(8) As Special Resolution-Item no. 8

Continuation of appointment of Mr, P.K. Nanda (DIN 00751931) as an Independent Director.

Particulars Votes Cast in Favour Votes Casl Against Invalid Votes Consolidated Details of Valid Votes

TotaTNo- "i'otal_N_o-.-0-1-'"--N- o-.-o-f- ··--N-o-.. o-f- No. of No. of " 'No-:Or- No. of shares/Vo

tes of shares/ Members shares/ Members sharesN Members

~ Members votes held Votes otes • Detail ol ,Yohng 11 2 9811326 107 9161523 5 649803 Nil Nil

-_-- --·- 93.38%_1_~~~ 6.62% - - -I % to total valid votes

L • -


Continuation of appointment of Mr. A.K. Thakur (DIN 00031778) as an Independent Director.

-----J Particulars Consolidate of Valid

d Details Votes Cast in Favour

I

f Detail of voli!!.9

1 % to futai valtd votes

Votes TotaTNo. T otal No. of

of Mernbe1::.

114

shares/ votes held 9811406 -

-- -No. of Members

108

-(10) As Special Resolution-Item no. 10

No. of shares/ Votes

9161578

93.38% --

Votes Cast Against l11vali<.I VoteS--

- No~ Cir No. of No. or No. of Members sharosN Members sharesNo

oles tes 6 649828 ___ N;..;.1;.;..·1 _. __ _JJ_11 __

6.62% '- _..... ____ ----

Approval for payment of minimum remuneration to Mr. Eiichi Seto (DIN 0270'1734}, Managing Director & CEO, in caseof no profits I inadequate profits.

~ Particulars l Com;olidated Details ~Votes Cas of Valid Votes

Total No Total NO.o f No. of -I ol shares/ . Members

I Members votes held±=

Deta1lotvot1n9 t 115-- 9811431 - -ga-l % to total vahd 1

votes ~- __ _

tin Favour

No. of shares/. Votes

9656827

9842%


Voles Cast

-------No. of Members

·-~ --Against Invalid Votes

No-:Or - - No. or sharesN Members

otes

-No. of shares/Vo

tes - Nil --17 154604 Nil -----1.58%

Approval for payment of minimum remuneration to Mr. Gopal Bansal (DIN 06836592), Wholetime Director & CFO, in case of no profits I inadequate profits.

Particulars Consolidated Details votes cast in Favour Votes Cast Agai11st Invalid Votes of Valid Votes J_ -- No -of Toiai No 01

- No. of -No-:-of Total No No. of No. of No of I or shares/ ~embecs shares/ Members shares/V Members shares/Vo

I Members votes held Votes oles tes

Detail of voting 115 - 9811391 --gs- ~- 9656787 ~17-- 154604 Nil Nil - - ----t % to total valid 98.42% 1.58% L votes

~~- -


Appointment of Mr. Yugo Hashimoto (DIN 08165797) as Director.

I Particulars- 1l Co11solidated Details I of Valid Votes

, Total No r1

Total No~ N I of shares/ Me

' -'" Me111berj votes held_· ~--

1

Dew1lofvotmg 4- 11f 9 81_1401-% to total valid

, votes _ _ _l _

Vot cs Cast in Favour Voles Cast Against In

~-~-

o. of No. of No. of No. of No. o rnbers shares/ Members sharcs/V Memb

Votes otes 113 9760485 2 50916 Nil - - -

99.48% 0.52%

- ... ~ -----~-- - -

valid votG's -1 No. of

crs sharesNo tes


Appointment of Mr. Yugo Hashimoto (DIN 08165797) as Managing Director & Chief Executive Officer.

r Particul<trs

Detail of "'.,Ottn9 % to total vahd votes

consolictatcd Details of Valid Votes

Total No. Total No of ot shares/

Members votes held

No. of Members

115 981138~1--,_-1_1_3_

(14) AS Special Resolution-Item no. 14

tin Favour-

No. of shares/ Votes

9760465

99.48%

Vot cs Cast Againsl

----No . of No. of Men 1bers sharesN

oles - ---2 50916 ~-

0.52%

- - 1nvati<.1 votes - -

-- -----1 No. of Members

No. of sharesNo

tes Nil Nd

--1--

Alteration of Mernorandum of Association of the Company

Particulars ' ConsolidatcdDctails l of Valid Votes

Totol No Total No of

~ Me~~ers j v~:~~~~d Oelml of vQ._ting ~- 1_1'1 _ 9811361 _

r % to total valid 1

votes _ _ _

Votes Cast in Favour Votes Cast Against h~valid Voles

-No. of _ Members

113

No. of No--or- No. of No. of No. of shares/ Members sharesN Members sharesNo Votes otes tes

98113'16 -~1-- --15 - Nil Nil

-l- 9;;,.;9;_9;.,.;9..;.9_;.8.;;.,%-1-----1 0~0002~-~ ~ ·----~


Adoption of new Articles of Association of the Company.

-Partic~lars - 1 Consolidalc of Valid

·d Details Votes

I

t Oeta~ of voting

l % to total valid votes

Total No T otal No. of of

Mentbers 115

shares/ votes held 9811.1\36

f Votes Cast in Favour !

No. of No. of Members shares/

Votes 102 9606512

97.91% -

Votes Cast A gainsl - - --1,ivalidVol;;;--

No. of Members

---13

s No-:-of hares/V oles ----

20.i\924 ~

2.09%

No. of No. or Members sharesNo

tcs Nil Nil

Based on the above details of votes cast, the Chairman may declare lhc result

7. I hereby confirm that the electronic data registers and all other relevant records related to remote e-voting and poll is under my safe custody and will be handed over to the Company Secretary for preserving safely after the Chairman consider, approves and signs the minutes of the AGM

Thanking you,

Yours Sincerely,

Kanwaljit Sin h Company Secretary in Practice CP No. 5870 FCS No. 5901 Date: 13.08.2018 Place : Chandigarh

Por IMl llUZU LfMITID

--~~

(OOPAL BANSAL) ~DiNctor& Cltllf Plnlncial Officer

ANNUAL REPORT 2018

CSR INITIATIV£S 2017-2016 ...

Healthcare - Ambulances, Patient Trolleys and Wheel Chairs in Government Hospitals

1eCJ ~ SML ISUZU ~ ~ t59000ij ~ OlO'C 01"!3" ~ ~ me-1

Education - School infrastructure up-gradation Projects : Desks, Chairs, Fans, Water Purifiers and Toilets in village Schools

CSR INITIATIVE.5 2017-!0ta

Preventive Healthcare & Sanitation : Health Camps and Refuse Collector Bins provided for cleanliness

Vocational training Projects for girls

Education -Support to under privileged girls in the form of Fees, Uniforms & Books

SML ISUZU LIMITED (FORMERLY SWARAJ MAZDA LIMITED)

BOARD OF DIRECTORS

S.K. TUTEJA - Chairman

P.K. NANDA

A.K. THAKUR

DR. VASANTHA S. BHARUCHA

SUDHIR NAYAR

G. IWANAMI

K. GODA

T. KIKKAWA

M. MOROHOSHI

T. IMAI

PANKAJ BAJAJ

E. SETO - Managing Director & CEO

GOPAL BANSAL - Whole-time Director & CFO

AUDITORS B S R & ASSOCIATES LLP

LISTING OF SHARES BSE LIMITEDNATIONAL STOCK EXCHANGEOF INDIA LIMITED

BANKERS CANARA BANKMIZUHO BANK LTD.MUFG BANK LTD.

REGISTERED OFFICE VILLAGE : ASRON,& WORKS DISTT. SHAHID BHAGAT SINGH NAGAR

(NAWANSHAHR) PUNJAB-144 533

CORPORATE OFFICE SCO 204-205, SECTOR 34-A,CHANDIGARH-160 135

COMPANY SECRETARY

PARVESH MADAN

22

CONTENTS PAGE NO.

1 Report of the Directors 3

2 Management Discussion and Analysis 10

3 Corporate Governance Report 13

4 Shareholders' Information 24

5 Annexure to Directors' Report 29

6 Balance Sheet 48

7 Statement of Profit and Loss 49

8 Cash Flow Statement 50

9 Statement of changes in Equity 52

10 Notes Forming Part of the Ind As Financial Statements 53

11 Independent Auditors' Report 111

12 Auditors’ Certificate on Corporate Governance 120

13 Certificate by Managing Director & CEO and Whole-time Director & CFO 121

14 Declaration by Managing Director & CEO 121

15 Notice of Annual General Meeting 122

34TH ANNUAL GENERAL MEETINGon Thursday, 9th August, 2018at 3.00 P.M. at Village Asron,Distt. Shahid Bhagat Singh Nagar,(Nawanshahr), Punjab - 144 533

3

REPORT OF THE DIRECTORS

The Directors are pleased to present their Thirty-Fourth Annual Report together with audited financial statements for thefinancial year ended 31st March 2018.

PERFORMANCE REVIEW

The Indian economy witnessed a slow-down during fiscal 2017-18 due to persisting impact of demonetization, transitorydisruptions caused by implementation of Goods and Service Tax (GST) and weak agricultural growth. GDP growth estimateof 6.6 percent for fiscal 2017-18 (7.1 percent achieved in fiscal 2016-17) has been the lowest since 2014-15. However,Commercial Vehicle Industry (all segments including exports) grew 15.9 percent to reach volume of 9,53,300 vehicles supportedby Government's push towards infrastructure development, road construction & mining activities; an increased demand fromconsumption driven sectors as well as e-commerce logistics service providers; and strict implementation of overloadingnorms in some states. Light vehicles (LCVs) grew higher at 19.5 percent to reach 5,68,900 and Medium & Heavy vehicles(M&HCVs) grew 11.0 percent to reach 3,84,400.

The Company was unable to participate in that growth principally due to inadequate availability of vehicles for sale caused bythe unexpected and sudden order of the Supreme Court of India on 29th March 2017 banning sale of BS III vehicles with effectfrom 1st April 2017. That order had rendered the entire inventory of BS III vehicles, built up for the ensuing school bus seasonof April-July 2017, non-saleable. All such vehicles had to be modified to make them BS IV compliant. In subsequent months,production of vehicles suffered on account of shortage of some critical components. Consequently, sales volume for the yearcould reach only 11355 against 14909 sold in the previous year.

The financial performance of the Company, for the year ended 31st March, 2018 is summarized below:

(Rs. in Crores)

Year ended 31st March 2018 2017

Sales volume (No. of vehicles) 11355 14909

Total Income 1177.25 1520.34

Less : Excise duty on sales 39.09 160.02

Net Income 1138.16 1360.32Less : Material cost & other expenses 1089.78 1246.18

Operating profit 48.38 114.14Profit before tax 9.46 84.14

Profit after tax 8.50 63.01Balance of profit from prior years 215.31 172.52

Surplus available for appropriation 223.81 235.53

The Company has adopted Indian Accounting Standards (Ind-AS) with effect from 1st April, 2017 with the transition date of1st April, 2016. Accordingly, financial statements for the year ended 31st March, 2018 have been prepared as prescribed forInd-AS under Section 133 of the Companies Act, 2013 and the relevant rules. Previous year's figures have been restated tomake them comparable.

DIVIDEND

The Directors have recommended payment of dividend of Rs. 1.5 per equity share of face value of Rs. 10/- each for the yearended 31st March, 2018 (previous year - Rs. 8.0 per equity share). The cash outflow on that account will be Rs. 2.62 crores(previous year - Rs. 13.93 crores), including dividend distribution tax of Rs. 0.45 crores (previous year - Rs. 2.36 crores).

44

MANAGEMENT DISCUSSION AND ANALYSIS

A Management Discussion and Analysis, which also covers the state of the Company's affairs, forms a part of this report.

CORPORATE GOVERNANCE

A report on corporate governance together with the Auditors' Certificate confirming compliance with corporate governancenorms as stipulated under the SEBI Listing Regulations, 2015, forms a part of this report.

INDUSTRIAL RELATIONS

Industrial relations and work atmosphere remained cordial throughout the year with sustained communication and engagementwith workforce through various forums.

CREDIT RATING

The Company continues to enjoy the highest rating for short term borrowings of A1+ ('A one plus') from ICRA and the long termrating for line of credit / cash credit limits is AA ('double A').

SAFETY, HEALTH AND ENVIRONMENT

The Company continues to demonstrate strong commitment to safety, health and environment which have been adopted ascore organizational values. The Company assures safety and audits its facilities in accordance with statutory and regulatoryrequirements. The Directors review these areas every quarter through reports and presentations made at the Board Meetings.Employees are continuously made aware of hazards / risks associated with their job and their knowledge and skills areupdated through requisite training to meet any emergency. Medical and occupational check-ups of employees andeco-friendly activities are promoted. Safe disposal of hazardous waste is ensured through an effluent treatment plant and anincinerator; a sewage treatment plant ensures eco-friendly disposal of sewage.

The Company is certified as BS OHSAS 18001: 2007 in respect of Occupational Health & Safety Assessment Series andISO 14001: 2015 in respect of Environmental Management System.

CURRENT BUSINESS ENVIRONMENT

Directors believe that demand for trucks during financial year 2018-19 will remain buoyant due to the increased thrust oninfrastructure projects, growing demand from consumption-driven sectors & e-commerce logistic service providers, replacementled buying and generally improved economic scenario. In the passenger bus segment, replacement led buying, following ayear of sharp contraction, and Government's focus on improving urban as well as rural transportation, etc. are expected topush volumes. Further, the Government's plan on phasing out of older diesel vehicles, at an advanced stage of formalization,is expected to generate additional demand both for trucks and buses.

Based on the above factors, during financial year 2018-19, M&HCV Truck segment is expected to register a growth of 4-6percent and the LCV Truck segment is expected to grow 9-11 percent. Bus sales are expected to grow by 12-14 percent.However, competition is becoming increasingly intense with existing players continuously expanding their product portfolios.

Amidst such competitive environment and to meet ever changing regulatory requirements, the Company will continue itsfocus on customer reach, product development and up-gradation, innovative and cost effective technology solutions,up-gradation of manufacturing technology and cost cutting.

Company's capex project envisaging an outlay of Rs. 220 crores towards technological advancement, product up-gradation /development and up-gradation of plant infrastructure to improve manufacturing efficiency is in its final stages of completion.An amount of Rs 191.3 crores has been incurred till 31st March, 2018. For this capex spending, the Company has drawnRs.140.0 crores External Commercial Borrowings (ECB), designated in US Dollars (fully hedged), and the balance is frominternal accruals.

5

DIRECTORS

Mr. Masaki Nakajima and Mr. Masahiro Narikiyo tendered their resignations as Directors of the Company with effect from23rd March, 2018. The Board, in its Meeting held on 23rd March, 2018, recorded its deep appreciation for the valuable supportand advice of the two gentlemen during their tenure.

The Board, on the recommendation of its Nomination and Remuneration Committee, appointed Mr. Gota Iwanami andMr. Masaki Morohoshi as Additional Directors of the Company on 23rd March, 2018, who holds office until the ensuing AnnualGeneral Meeting of the Company.

Mr. Takahiro Imai, who was appointed by the Members as Whole-time Director designated as Director-R&D (Isuzu Products& Projects) at the last Annual General Meeting of the Company, resigned from his post with effect from 28th April, 2018.However, he continues to serve on the Board as a Non-Executive Director. The Board, at its Meeting held on 23rd May 2018,placed on record its deep appreciation for his valuable contribution to the Company as Director - R&D.

Mr. Eiichi Seto decided to demit office of Managing Director & CEO with effect from 10th August, 2018. However, he willcontinue as a Non-Executive Director on the Board of the Company. The Board, in its Meeting held on 23rd May, 2018, tooknote of his outstanding and inspirational leadership as Managing Director & CEO and recorded its deep appreciation for hisvaluable contributions to the Company and extended to him its best wishes for his future career.

The Board, at its Meeting held on 23rd May, 2018, was pleased to appoint, on the recommendation of its Nomination &Remuneration Committee, Mr. Yugo Hashimoto as Managing Director & CEO, in place of Mr. Eiichi Seto, w.e.f. 10th August,2018, for a period of five years, subject to approval of the Members at the ensuing Annual General Meeting of the Companyand of the Central Government, if required.

The Securities and Exchange Board of India ('SEBI') has amended SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015 which mandates that, effective 1st April 2019, no listed entity shall appoint a person or continue thedirectorship of any person as a non-executive director who has attained the age of 75 years unless approval of shareholdershas been obtained through a special resolution. Presently, Company's two Non-Executive Independent Directors namely -Mr. P.K. Nanda & Mr. A.K. Thakur have already attained age of 75 years. Therefore, Special Resolutions being proposed forapproval by the Members at the ensuing Annual General Meeting for Mr. P.K. Nanda & Mr. A.K. Thakur to continue asDirectors on the Board of the Company.

Mr. Takeru Kikkawa retires by rotation and being eligible, offers himself for re-appointment.

Mr. Pankaj Bajaj retires by rotation and being eligible, offers himself for re-appointment.

At the last Annual General Meeting, held in September 2017, the Members had approved the appointment of Mr. Kazuo Godaas Non-Executive Director.

The details of the Directors being recommended for appointment / re-appointment are contained in the Notice convening theforthcoming Annual General Meeting of the Company.

All the independent Directors have given declaration to the Company that they meet the criteria of 'independence' set out inthe SEBI (LODR) Regulations, 2015 and the Companies Act, 2013.

KEY MANAGERIAL PERSONNEL (KMPs)

In terms of the applicable provisions of the Companies Act 2013, Mr. Eiichi Seto, Managing Director & CEO, Mr. GopalBansal, Whole-time Director & CFO and Mr. Parvesh Madan, Company Secretary are the Key Managerial Personnel of theCompany.

No KMP has resigned or was appointed during the financial year ended on 31st March 2018. However, on 23rd May, 2018,Mr. Eiichi Seto decided to demit office of Managing Director & CEO w.e.f. 10th August 2018 and the Board has appointedMr. Yugo Hashimoto as Managing Director & CEO with effect from 10th August 2018 subject to approval of the Members ofthe Company and Central Government, if required. On his appointment as Managing Director & CEO, he will be a KMP underthe provisions of the Companies Act 2013.

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NOMINATION AND REMUNERATION POLICY

Based on the recommendations of its Nomination and Remuneration Committee, the Board has adopted a Nomination andRemuneration Policy, which is attached as Annexure A.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATE COMPANIES

The Company has no Subsidiary, Joint Venture or Associate Company.

RELATED PARTY TRANSACTIONS

All related party transactions that were entered into during the financial year were on arm's length, in the ordinary course ofbusiness and in compliance with the applicable provisions of the Companies Act, 2013 and the Listing Regulations. Therewere no material transactions made by the Company during the year that would have required shareholders approval.

All related party transactions are placed before the Audit Committee for approval. Prior omnibus approval of the Audit Committeeis obtained for the transactions which are repetitive in nature.

The Company has adopted a policy to deal with related party transactions as approved by the Board of Directors. It isuploaded on the Company's website at web link: http://smlisuzu.com/Financials/RPTPolicy.aspx

In terms of Section 134(3)(h) of the Companies Act, 2013, there are no transactions to be reported in Form AOC-2. The detailsof the related party transactions, as per Ind-AS, are set out in Note 37 to the Financial Statements.

EXTRACT OF ANNUAL RETURN

Pursuant to Section 92 (3) of the Act and Rule 12 (1) of The Companies (Management and Administration) Rules, 2014, theextract of Annual Return in Form MGT-9 is attached as Annexure B.

MEETINGS OF THE BOARD

Five Board meetings were held during the year as detailed in the Corporate Governance Report which forms part of this report.

AUDIT COMMITTEE

The Audit Committee comprises three independent Directors, Mr. P.K. Nanda, as Chairman, Mr. A.K. Thakur and Mr. SudhirNayar, and the Whole-time Director & CFO, Mr. Gopal Bansal. All the recommendations made by the Audit Committee duringthe year were accepted by the Board.

PARTICULARS OF EMPLOYEES

The information as per Section 197 of the Companies Act, 2013 read with Rule 5 (1) of the Companies (Appointment andRemuneration of Managerial Personnel) Rules, 2014, forms part of this Report is attached as Annexure C.

The disclosure as per Section 197 of the Companies Act, 2013 read with Rule 5 (2) and Rule 5 (3) of the Companies(Appointment and Remuneration of Managerial Personnel) Rules, 2014 is provided in a separate annexure forming part of thisReport. However, as per the provisions of Section 136 (1) of the Companies Act, 2013, the report and financial statements arebeing sent to the Members and others entitled thereto, excluding the aforesaid annexure. This annexure is available forinspection by the Members at the Registered Office of the Company during business hours on working days of the Companyup to the date of the ensuing Annual General Meeting. Any member interested in obtaining a copy thereof may write to theCompany Secretary.

PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS UNDER SECTION 186 OF THE COMPANIES ACT, 2013

The Company has not given any loans, guarantees or made any investments during the year, which would be covered bySection 186 of the Companies Act, 2013.

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AMOUNTS PROPOSED TO BE CARRIED TO RESERVES

The Company proposes to carry Rs. 0.85 crores to General Reserve for the financial year 2017-18 (Previous year -Rs. 6.28 crores).

MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION OF THE COMPANY

No material changes have occurred or commitments made after 31st March, 2018, which may affect the financial position ofthe Company or require disclosure.

SUSTAINABILITY INITIATIVE

Your Company is conscious of its responsibility towards preservation of natural resources and continuously takes initiativesto reduce consumption of electricity and water.

RISK MANAGEMENT

The primary objective of risk management is to protect the Company against risks to the value of the business, its capital andits continuity. In order to achieve the objective and for better governance, the Board has constituted a Risk ManagementCommittee (RMC) comprising three independent Directors, one non-executive Director and the Whole-time Director & CFO.

RMC is entrusted with the functions of determining efficacy of risk management framework of the Company, evaluation ofrisks and mitigating measures. The Company has adopted a formal Risk Management Policy based on the recommendationsof RMC.

The Policy sets out key risk areas - financial risks (including risk to assets), legislative and regulatory risks, environmentalrisks (including natural disasters), operational risks (markets, production, technology, etc.), risks relating to employment andmanpower, and individual large transactional risks. The Managing Director & CEO identifies and proposes action in respect ofall risks through his Management team as and when any are perceived or foreseen or inherent in operations; analyses these,and then reports to RMC for its review and guidance.

CORPORATE SOCIAL RESPONSIBILITY

Corporate Social Responsibility (CSR) Committee consists of two independent Directors, namely, Mr. S.K.Tuteja, as Chairmanand Dr. (Mrs.) Vasantha S. Bharucha and two Executive Directors - Mr. Eiichi Seto, the Managing Director & CEO andMr. Gopal Bansal, Whole-time Director & CFO. On the recommendation of the Committee, the Board has adopted Company'spolicy on CSR with key thrust areas defined as - promoting healthcare and sanitation, supporting education of girl child andunder privileged children, sponsoring vocational education for women, etc.

Annual Report on CSR activities for the year ended 31st March 2018 is attached as Annexure D.

BOARD EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and Listing Regulations, performance evaluation of the Board, theDirectors as well as Committees of the Board has been carried out and the details are covered in the Corporate GovernanceReport.

CHANGE IN THE NATURE OF BUSINESS

There has been no change in the nature of business of the Company during the year.

SHARE CAPITAL

There was no change in the Company's issued, subscribed and paid-up equity share capital during the year.

DEPOSITS

During the year, the Company has not accepted any deposit under Chapter V of the Companies Act, 2013.

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SIGNIFICANT ORDERS PASSED BY REGULATORS, COURTS OR TRIBUNALS IMPACTING GOING CONCERN ANDCOMPANY'S OPERATIONS

To the best of our knowledge, the Company has not received any such orders from regulators, courts or tribunals or any otherauthority during the year which may impact the going concern status of the Company or its operations in future.

POLICY ON PREVENTION, PROHIBITION AND REDRESSAL OF SEXUAL HARASSMENT AT WORKPLACE

The Company has adopted a policy in line with the provisions of the Sexual Harassment of Women at Workplace (Prevention,Prohibition and Redressal) Act, 2013 (the Act) and the Rules there under. The Policy aims to provide protection to women atthe workplace and prevent and redress complaints of sexual harassment and for matters connected or incidental thereto, withthe objective of providing a safe working environment. The Company has also constituted an Internal Complaints Committeein accordance with the Act, to inquire into complaints and take appropriate action.

The Company has not received any complaint of sexual harassment during the year.

VIGIL MECHANISM / WHISTLE BLOWER POLICY

The Company has adopted a whistle blower policy, to provide formal mechanism to the Directors and Employees to reporttheir concerns about unethical behaviour, actual or suspected fraud or violation of the Company's code of conduct or ethicspolicy. It provides for adequate safeguards against victimization of Directors and Employees who avail the mechanism andprovides for direct access to the Chairman of the Audit Committee.

Whistle Blower Policy of the Company is available on the Company's website at the web link:http://smlisuzu.com/Financials/WhistleBlowerPolicy.aspx

SECRETARIAL STANDARDS

The Company has duly complied with the applicable Secretarial Standards on Meeting of Board of Directors (SS-1) andGeneral Meetings (SS-2) issued by the Institute of Company Secretaries of India (ICSI).

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134 (3) (c) and 134 (5) of the Companies Act, 2013, the Directors, to the best of their knowledge andability, confirm that:

(a) in the preparation of the annual accounts for the year ended 31st March, 2018, the applicable accounting standards havebeen followed and proper explanations provided relating to material departures, if any;

(b) they have selected such accounting policies and applied them consistently and made judgments and estimates that arereasonable and prudent, so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2018and of the profit of the Company for the year ended on that date;

(c) they have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with theprovisions of the Companies Act, 2013, for safeguarding the assets of the Company and for preventing and detectingfraud and other irregularities;

(d) they have prepared the annual accounts on a going concern basis;

(e) they have laid down internal financial controls to be followed by the Company and that such internal financial controls areadequate and are operating effectively;

(f) they have devised proper systems to ensure compliance with the provisions of all applicable laws and that suchsystems are adequate and operating effectively.

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INTERNAL FINANCIAL CONTROLS WITH REFERENCE TO FINANCIAL STATEMENTS

Based on the work performed by the internal, statutory and secretarial auditors and the reviews carried out by the Managementand the relevant Board Committees, the Directors are of the opinion that the Company has in place, adequate internal financialcontrols, with reference to financial statements, commensurate with the size and nature of the business of the Company.During the year, such controls were tested and no reportable material weaknesses in the design or operation were observed.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

The details of familiarisation programme for Independent Directors in respect of their roles, rights & responsibilities, nature ofthe industry in which Company operates, business model of the Company and related matters are available on the website ofthe Company at the web link: http://smlisuzu.com/Financials/FamiliarisationProgramme.aspx

ALTERATION OF MEMORANDUM OF ASSOCIATION AND ADOPTION OF NEW ARTICLES OF ASSOCIATION

The Memorandum of Association (MOA) and Articles of Association (AOA) of the Company, as currently in force, are inaccordance with the Companies Act, 1956.

With the enactment of the Companies Act 2013 (the new Act), as amended from time to time, it is proposed to alter / amendthe existing MOA and to adopt new AOA to align with the provisions of the new Act.

Pursuant to the provisions of the Companies Act 2013, read with the Rules framed there under, alteration of MOA and AOArequires approval of shareholders by way of a special resolution and, accordingly, the resolutions are being placed before theMembers at the ensuing Annual General Meeting for their approval.

SECRETARIAL AUDIT

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and The Companies (Appointment and Remunerationof Managerial Personnel) Rules, 2014, M/s A. Arora & Co., a firm of Company Secretaries in practice, was appointed as theSecretarial Auditor to carry out the Secretarial Audit of the Company for fiscal 2017-18.

The Secretarial Audit Report, for the year under review, does not contain any qualification and is attached as Annexure E.

STATUTORY AUDITORS

B S R & Associates LLP, a firm of Chartered Accountants, was appointed as the Statutory Auditors of the Company, at its31st Annual General Meeting, for a period of five years.

The Auditors' Report to the Members of the Company, for the year under review, does not contain any qualification.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO

The required information on conservation of energy, technology absorption and foreign exchange earnings and outgo asstipulated in the Companies Act, 2013 is attached as Annexure F.

ACKNOWLEDGMENTS

Your Directors express their grateful appreciation for the co-operation received from the concerned Government departments,banks, dealers and other business constituents during the year under review. Your Directors also wish to place on record theirdeep sense of appreciation for the committed services of the employees of the Company at all levels.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

S.K. TUTEJA EIICHI SETODated : 23rd May, 2018 Chairman Managing Director & CEO

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MANAGEMENT DISCUSSION AND ANALYSIS1. INDUSTRY REVIEW

Indian Commercial Vehicles Industry (excluding exports) grew 19.9 percent during financial year 2017-18, driven bystrong demand in the LCV Truck segment which grew 29.5 percent and also in the M&HCV Truck segment whichregistered a growth of 19.4 percent. In contrast, sales volume of buses contracted 13.7 percent. The growth in the trucksegment was supported by Government's push towards infrastructure development, road construction & mining activities;pent-up demand post GST implementation, replacement-led buying, improvement in finance availability at easier termsfor purchase of vehicles and strict implementation of overloading norms in some states. Decline in the bus segment wason account of sluggish demand for large buses and deferment of orders from State Road Transport Undertakings(SRTUs), owing to lower budgetary allocations.

Exports volumes declined by 10.5 percent to reach 96,900 vehicles.

2. OUTLOOK

The recovery in the Commercial Vehicles industry, led by the truck segment, since the beginning of Q2 of 2017-18 hascontinued. It is expected that, during current fiscal 2018-19, growth momentum in the truck segment will sustain supportedby Government's focus on infrastructure projects, higher demand from consumption driven sectors as well as e-commercelogistics service providers, further helped by the adoption of hub-n-spoke model of distribution by more business enterprisesas a result of the new GST law. The bus segment is also expected to grow, after a year of sharp contraction, supportedby replacement led demand and Government thrust on improvement of transport systems in urban areas as well as inthe rural sector.

Based on the above factors, the industry forecast is that during fiscal 2018-19, demand in M&HCV Truck segment willgrow by 4-6 percent and in the LCV Truck segment by 9-11 percent. Bus sales are expected to rise by 12-14 percent.

The Company is geared to meet the demand for its products with sufficient availability of vehicles besides introductionof new products / models, in particular the Global Series trucks with new improved cabin having features for morecomfort & safety, and Ecomax LR in the bus segment (introduced in the latter part of 2017-18), as also a new range ofCNG vehicles with Turbo CNG Engine and higher power Engine for tippers. The Company has also introduced the nextgeneration Telematics solution named 'SML SAARTHI' for advanced transportation management and on-road 24x7service support which will help customers, especially fleet owners, to manage their vehicles more efficiently and onreal- time basis. Thus, the Company can look towards recovering the lost ground during FY 2017-18 and achievesatisfactory growth during the current fiscal year despite intense competition.

3. COMPANY PERFORMANCE

The Company sold 11,355 vehicles in 2017-18 against 14,909 in the previous year. Reasons for drop in sales during theyear have been explained in the Report of Directors under Performance Review.

The Company has converted all BS III vehicles, which were lying in the Company's stock as on 31st March 2017,to BS IV.

Break up of sales is given hereunder:(Nos.)

2017-18 2016-17

Passenger vehicle (buses) 6097 7919

Cargo vehicles 5258 6990

Total 11355 14909

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Total Income (net of excise) for 2017-18, is Rs. 1,138.2 crores against Rs. 1,360.3 crores in the preceding year, asdetailed below:

(Rs. in Crores)

2017-18 2016-17

Sale of Vehicles 1,044.0 1,267.2

Sale of Spare Parts etc. 94.2 93.1

Net Income 1,138.2 1,360.3

Material cost at 73.8% (73.6%) of net income was slightly higher on account of net impact of shifting production toBS IV compliant vehicles.

Employee costs at Rs. 146.1 crores (Rs. 140.2 crores) were 12.8% (10.3%) of net income.

Marketing costs at Rs. 49.4 crores were 4.3% (3.9%) of net income.

Other operating & administrative expenses at Rs. 53.9 crores made up 4.7% (3.8%) of net income.

Depreciation Charge was at Rs. 28.4 crores (Rs. 23.8 crores), increase has been due to additional investments in plant& machinery and other facilities during the year.

Due to lower sales volume, operating profit declined to Rs. 48.4 crores (4.3% of net income) against Rs. 114.1 crores(8.4% of net income) earned during the fiscal 2016-17.

Interest expense (net of interest earned) amounted to Rs. 8.9 crores (Rs. 2.5 crores), again because of the aforementionedinvestments and lower cash generation arising from a heavy drop in sales.

As a result of above, Profit before tax severely declined to Rs. 9.5 crores (0.8% of net income) against previous year'sRs. 84.1 crores (6.2%). Profit after tax was Rs. 8.5 crores (Rs. 63.0 crores), which translates to an earnings per shareof Rs. 5.9 (Rs. 43.5).

Net worth of the Company as on 31st March, 2018 was Rs. 398.1 crores against Rs. 403.8 crores on that date in theprevious year made up of equity component of Rs. 14.5 crores (Rs. 14.5 crores) and other equity of Rs. 383.6 crores(Rs. 389.3 crores).

Year-end short term and long term borrowings (ECB loan including current maturities) from banks - Rs. 70.0 crores(Rs. 5.1 crores) and Rs. 140.2 crores (Rs. 35.0 crores).

Property, Plant & Equipment including CWIP & Intangible assets stood at Rs. 399.9 crores (Rs. 293.5 crores).

Inventories at the year-end at Rs. 363.8 crores (Rs. 294.6 crores) increased from last year's level on account of higherstock of buses maintained to meet demand during peak school bus season (April-July).

Year-end trade receivables were at Rs. 117.3 crores (Rs. 114.8 crores) and trade payables were Rs. 211.8 crores(Rs. 190.7 crores).

Cash & Bank Balances (including Fixed Deposits with Banks) were Rs. 22.0 crores (Rs. 7.6 crores).

4. INTERNAL CONTROL SYSTEM AND ADEQUACYThe Company conducts its affairs within the framework of well-defined business plans which provides appropriateguidance and direction to its employees. Annual Business Plan for each fiscal year is formulated on the basis of welldefined processes and is approved by the Board of Directors. Finance & Accounts function is adequately staffed byprofessionally qualified and experienced personnel. An advanced ERP system - SAP (S/4 HANA) has been installed,during the year, to upgrade the existing Management Information System and to take care of future business needs.

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The Company has an effective reporting and monitoring system which is regularly reviewed at the meetings of the AuditCommittee and the Board while considering quarterly business performance. Business projections are revised in relationto market expectations and appropriate actions are taken by the Management to offset adverse changes to the extentpossible. Policies and procedures have been laid down to provide reasonable assurance that assets are safeguardedfrom risks of un-authorized use/disposition and transactions are recorded and reported with propriety, accuracy andspeed. These aspects of operations are regularly reviewed and verified by the Internal Audit department and the StatutoryAuditors. Company's own independent Internal Audit Department carries out audit reviews based on the Internal AuditPlan, as approved by the Audit Committee of the Board which also covers testing of established internal controls andstandard operating procedures. Significant observations of the Auditors are subsequently submitted to the Audit Committeeof the Board for its consideration and guidance. Outside support, for audit of some specific areas, is also taken as andwhen required. Audit Committee also reviews adequacy and effectiveness of Company's internal financial controls.

5. HUMAN RESOURCESThe Company has always strived to attract the best talent, provide invigorative work environment, retain achievers andoutstanding performers and to inculcate in the employees loyalty for the organization. Raising employees' involvementin the decision making process and grooming them for leadership positions has been an ongoing process. Industrialrelations and work atmosphere remained cordial throughout the year with sustained communication and engagementwith work force through various forums. Employees' strength as on 31st March, 2018 was 1060 (1063).

6. OPPORTUNITIES AND THREATSOutlook for commercial vehicle (CV) industry is positive, backed by projected improvement in industrial activity, strongfocus on infrastructure development, steady agricultural output and rising consumption expenditure. Over the mediumterm, Truck segment would also benefit from roll out of GST with positive impact on logistics sector through lifting ofbarriers and enhanced preference for hub-n-spoke model. Further, Government's increased thrust on improvement intransport system and initiatives like Smart City Program and increasing demand from inter-city movement are expectedto drive growth in the bus segment.

The key challenges during fiscal 2018-19 and going forward for the Company would be preparing itself to comply withseries of new regulations announced by the Government such as - additional bus body code with requirements likeelectronic stability control (ESC), multiplex wiring, NVH, Fire detection alarm & suppression system as per AIS 153 andrequirement of telematics as per AIS 140 etc., truck body code and several other regulations, to enhance passenger &driver comfort and road safety. As regards already notified BS-VI emission norms, to be effective from 1st April 2020,the Company has taken appropriate steps to meet the target timelines. All these require considerable development workand will significantly increase cost of production of vehicles.

7. BUSINESS RISKS AND CONCERNSThe demand for commercial vehicles is influenced by general economic conditions, including, among other things, ratesof economic growth, availability of credit, interest rates, environmental and tax policies, safety regulations, freight rates,fuel and commodity prices. Unfavorable trends in any of these factors will pose concern for the industry.

Transformation from BS-IV to BS-VI and other regulatory changes would require modifications in product designs andthe need for training across all relevant areas in manufacturing, marketing and customer services. These factors wouldsubstantially increase cost of production and, therefore, the prices of vehicles.

To meet the above challenges, the Company is continuing its focus on - product development, innovative and costeffective technology solutions such as powertrains through outsourcing, cost cutting, improvements in after sale service,measures for customer satisfaction, brand promotion, enhancing dealer network and empowering their sales force, etc.

The Risk Management Committee of the Board is entrusted with the functions of determining efficacy of the riskmanagement framework of the Company including evaluation of risks and mitigation measures taken by the Management.

8. CAUTIONARY STATEMENTStatements in the Management Discussion and Analysis Report describing the Company's objectives, projection, estimatesand expectations may constitute "forward looking statements" within the meaning of applicable laws and regulations.Actual results might differ materially from those either expressed or implied.

.

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CORPORATE GOVERNANCE REPORTThe Company follows principles of good corporate governance, disclosure and transparency giving high priorityto core values and ethics. It considers itself custodian and trustee for all its stake-holders. It seeks corporateexcellence by offering quality vehicles and service to customers, fostering team spirit amongst employees bytheir continuous involvement and participation in decision making processes placing high emphasis on theirintegrity and loyalty to the Company.

COMPOSITION OF THE BOARD

The composition of the Board of Directors ("Board") conforms to the SEBI (Listing Obligations and DisclosureRequirements) Regulations, 2015 ("Listing Regulations") with five independent Directors, including the Chairmanand a woman Director; two whole-time Directors and six non-executive Directors. Out of total six non-executiveDirectors, four are from the Promoter group, Sumitomo Corporation, Japan and two are from Isuzu Motors,Japan, the Company's technical adviser. All the non-executive Directors are qualified professionals with expertisein their own fields and have vast knowledge and experience in business and administration. No Directors areinter-se related to each other.

All independent Directors were appointed in accordance with the Companies Act, 2013 and Listing Regulations.The formal letter of appointment issued to Independent Directors containing terms and conditions of appointment isdisclosed on the Company's website www.smlisuzu.com . All the Independent Directors have declared to the Companythat they meet the criteria of 'independence' set out in the Listing Regulations and the Companies Act, 2013.

The Managing Director & CEO and the Whole-time Director & CFO, both are professionals. The Managing Director& CEO has been an employee of the Company's Promoter group - Sumitomo Corporation, as is his proposedsuccessor.

The Board periodically reviews and approves overall strategy, gives guidelines and directions to and overseesthe functioning of the Management to ensure that the objectives of the Company are met and its core valuessustained.

MEETINGS OF THE BOARD

Annual calendar of Board meetings is agreed at the beginning of the year.

Detailed agenda is sent to each Director / Committee Member prior to a meeting, including, as appropriate,operating and financial performance statements of the Company. The Board reviews strategy and businessplans, efficacy of risk management framework, annual operating and capital expenditure budgets, investmentand exposure limits, quarterly / half-yearly / annual operating performance and financial results, compliancereports of the laws applicable to the Company and minutes of meetings of the Committees of the Board and othersignificant developments.

INFORMATION ON MEETINGS, ATTENDENCE AND MEMBERSHIP

During the year, the Company held 5 Board Meetings on 10th May 2017, 10th August 2017, 10th November2017, 9th February 2018 and 23rd March, 2018. The maximum interval between any two meetings was wellwithin the maximum allowed gap of 120 days.

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The details are set out below:Name of Director (DIN No.) Category Board Meetings Attendance Directorships No. of Committee

during 2017-18 at the in other Positions inAGM held Companies* Companies#

Meetings Board on (as on 31.03.2018) includingHeld Meetings 22.09.2017 SML ISUZU LIMITED

Attended (as on 31.03.2018)Public Private Chairman Member

Mr. Surender Kumar Tuteja Independent 5 5 Yes 7 7 5 5Chairman (00594076) Non-ExecutiveMr. Pramod Kumar Nanda Independent 5 5 Yes 1 - 1 1(00751931) Non-ExecutiveMr. Ashish Kumar Thakur Independent 5 5 Yes 3 - 1 3(00031778) Non-ExecutiveMr. Sudhir Nayar (00200415) Independent 5 5 Yes 1 - 1 1

Non-ExecutiveDr. (Mrs.) Vasantha S. Bharucha Independent 5 5 Yes 1 - - 1(02163753) Non-ExecutiveMr. Masaki Nakajima (06605180) Non-Executive 5 5 No NA NA NA NA(ceased w.e.f. 23.03.2018)Mr. Takeru Kikkawa (03107280) Non-Executive 5 4 No - - - -Mr. Kazuo Goda (07572151) Non-Executive 5 3 No - - - -

Mr. Masahiro Narikiyo (07125220) Non-Executive 5 4 No NA NA NA NA(ceased w.e.f. 23.03.2018)

Mr. Pankaj Bajaj (00337925) Non-Executive 5 5 No - 1 - -

Mr. Gota Iwanami (08094102) Non-Executive NA NA NA - - - -(appointed w.e.f. 23.03.2018)Mr. Masaki Morohoshi (07302404) Non-Executive NA NA NA - 2 - -(appointed w.e.f. 23.03.2018)Mr. Takahiro Imai (07796387) Non-Executive 4 4 Yes - - - -Director - R&D (Refer Note)

Mr. Eiichi Seto (02704734) Executive 5 5 Yes - - - 1Managing Director & CEOMr. Gopal Bansal (06836592) Executive 5 5 Yes - - - 2Whole-time Director & CFOMr. Kei Katayama (06942162) Executive 1 1 NA NA NA NA NADirector - R&D(ceased w.e.f. 25.05.2017)

Note : Appointed w.e.f. from 26.05.2017 as whole-time-Director designated as Director – R&D (Isuzu Products & Project) and ceased w.e.f. 28.04.2018. However he will continue as Non-Executive Director.

* Excludes Directorships in Associates, Foreign Companies, Government Bodies and Companies registered under Section 8 of the Companies Act, 2013.

# Only Audit Committee and Stakeholders Relationship Committee of Indian Public Companies have been considered for Committee positions.

(a) None of the Directors is a member of more than 10 committees and chairman of more than 5 committees (as specified in the Listing Regulations), across all the companies in which he is a Director.

(b) The Senior Management personnel have made disclosures to the Board confirming that there are no material, financial and/or commercial transactions between them and the Company which would havepotential conflict of interest with the Company at large.

(c) As on March 31, 2018, none of the Directors is shareholder of the Company except Mr. S.K.Tuteja, Chairman and Non-Executive Independent Director of the Company who holds 1400 equity shares of the Company.

(d) None of the independent Directors is an independent Director in more than 7 listed companies and whole-time Director in any listed Company.

The details are set out below:

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CODE OF CONDUCT

The Board has laid down a well-defined Code of Ethics and Conduct (the "Code") to be followed byBoard members and senior management of the Company. Duties of independent Directors, as specifiedunder Companies Act, 2013, have been incorporated in the code.

The Code is available on the website of the Company www.smlisuzu.com . In accordance with the ListingRegulations, all Directors and senior management personnel have affirmed compliance with this Code.

A declaration signed by the Managing Director & CEO to this effect forms part of this report.

CEO/CFO CERTIFICATION

As required under the Listing Regulations, the Managing Director & CEO and Whole-time Director &CFO have certified to the Board regarding Annual Financial Statements for the year ended31st March, 2018. A copy of the certificate was placed before the Board of Directors at their meeting heldon 23rd May, 2018 and forms part of this report.

SEPARATE MEETING OF INDEPENDENT DIRECTORS

A separate meeting of Independent Directors was held, in accordance with the Companies Act andListing Regulations, to review performance of non independent Directors, the Chairman and the Boardas a whole and assess the quality, quantity and timeliness of flow of information between the Managementand the Board. All independent Directors attended the meeting.

FAMILIARISATION PROGRAMME FOR INDEPENDENT DIRECTORS

The familiarisation programme for Independent Directors can be accessed from the website of theCompany at the web link http://smlisuzu.com/Financials/FamiliarisationProgramme.aspx

BOARD EVALUATION

Pursuant to the provisions of the Companies Act, 2013 and the Listing Regulations, the Board has carriedout an annual evaluation of its own performance and that of its Committees after seeking inputs from allthe Directors and members of relevant Committees. The Board has also carried out performance evaluationof each Director based on the evaluation carried out by its Nomination and Remuneration Committee(NRC).

The criteria for performance evaluation was set out by NRC and adopted by the Board. These includedcomposition and structure of the Board and its Committees, effectiveness of the Committees, knowledgeof the Company's operations by the members, their participation at meetings including preparedness forissues for consideration, level of contribution in assessing and improving performance of the Companyand interactions amongst themselves and with senior management. Adherence to Code of Conduct ofthe Company, fiduciary and statutory obligations, continuing maintenance of independence byindependent Directors, etc. were also a part of the performance evaluation.

The Board was satisfied with its composition and its diversified nature and that all Directors upheld thehighest standards of integrity and probity, adhered to the Company's code of conduct, made constructiveand effective contribution at meetings and generally carried out their responsibilities well in the interestof the Company and its stakeholders.


http://smlisuzu.com/Financials/FamiliarisationProgramme.aspx

1616

A separate meeting of independent Directors was held during the year to review the performance of non-independent Directors, performance of the Board as a whole and performance of the Chairman of theCompany, taking into account the views of other Directors. That review confirmed satisfactory performanceon all counts.

COMMITTEES OF THE BOARDAudit CommitteeThe members of Audit Committee possess vast experience in and knowledge of corporate affairs andfinance. During the financial year under review, four meetings of Audit Committee were held on 9th May2017, 9th August 2017, 9th November 2017 and 8th February 2018. The Chairman of the Audit Committeewas present at the last Annual General Meeting of the Company held on 22nd September, 2017.The Committee also met on 22nd May 2018, prior to the finalization of the Accounts for fiscal 2017-18.The Composition of Audit Committee and the details of meetings attended by the members during theyear are given below :

Name of the Member Category No. of meetings attendedduring 2017-18

Mr. P. K. Nanda, Chairman Independent, Non-Executive 4Mr. A. K. Thakur Independent, Non-Executive 4

Mr. Sudhir Nayar Independent, Non-Executive 4

Mr. Gopal Bansal Executive (Whole-time Director & CFO) 4

Audit Committee meetings are usually attended by the Managing Director & CEO, the Head of InternalAudit, the Company Secretary and a representative of Statutory Auditors. Senior Management is alsoinvited to participate in the deliberations as appropriate.Terms of reference of the Audit Committee inter alia include:• Oversight of the Company's financial reporting process and the disclosure of its financial information

to ensure that the financial statements are correct, sufficient and credible;• Review with the management, the annual and quarterly financial statements and auditor's report

thereon before submission to the Board for approval.• Review with the management, statutory and internal auditors, adequacy of the internal control

systems;• Evaluation of internal financial controls and risk management systems;• Recommendation for appointment, remuneration and terms of appointment of Auditors of the

Company;• Discussion with statutory auditors the nature and scope of audit as well as post-audit areas of concern;• Review and monitor the Auditor's independence and performance, and effectiveness of audit process;• Review adequacy of internal audit function including structure of the internal audit department, staffing

and seniority of the official heading the function, reporting structure, coverage and frequency ofinternal audit;

17

• Discussion with internal auditor of any significant findings and follow up thereof;• Review findings of any internal investigations by the internal auditors into matters where there is

suspected fraud or irregularity or a failure of internal control systems of a material nature and reportingthe matter to the Board;

• Approval (or any subsequent modification) of transactions of the Company with related parties;• Review functioning of the Whistle Blower mechanism;

Stakeholders Relationship CommitteeStakeholders Relationship Committee is headed by Mr. S.K. Tuteja, Independent Director, and consistsof two Executive Directors as its members.Terms of Reference of the Committee are as follows:• Consider and resolve grievances of the shareholders of the Company including complaints related

to transfer of shares, non receipt of Annual Report, non-receipt of dividends, etc.• Transfer / transmission of shares, Dematerialization / rematerialization of shares, Issue of duplicate

share certificates and such other functions as may be stipulated under Listing Regulations and theCompanies Act, 2013.

The Committee also reviews the functioning of the Registrar and Transfer Agent to render effective andquality services to the investors. During the financial year ended 31st March, 2018, 11 meetings of theCommittee were held.The composition of the Committee and the details of meetings attended by the members during the yearare given below:


Mr. S. K. Tuteja, Chairman Independent, Non-Executive 11

Mr. Eiichi Seto Executive (Managing Director & CEO) 8


Mr. Parvesh Madan, Company Secretary, is the Compliance Officer of the Company.

The Company received 723 queries / requests from the shareholders which, inter-alia, included queries/requests related to dematerialization / rematerializaion of shares, non-receipt of dividend / annual reports,transfer of shares and revalidation of dividend, duplicate shares etc. which were duly attended to and theCompany has furnished necessary documents/ information to the shareholders. No share transferspertaining to the year under review were pending on 31st March 2018.

Total of 3 complaints were received during the year from shareholders, through SCORES (SEBIComplaints Redressal System) and BSE/ NSE, which were resolved to the satisfaction of theshareholders. As on 31st March, 2018, no complaint was pending.

1818

Nomination and Remuneration Committee

This Committee has been constituted in compliance with the requirements of the Companies Act, 2013.Terms of Reference of the Committee are as follows :• Identify persons who may be appointed Directors in accordance with the criteria laid down,

recommend to the Board their appointment and removal.• Evaluation of performance of Directors including independent Directors and the Board.• Formulate criteria for determining qualifications, positive attributes and independence of a Director

and recommend to the Board a policy relating to remuneration for the Directors, Key ManagerialPersonnel (KMP) and other employees.

The Nomination and Remuneration Committee also helps the Board on succession plan for the Directorsand Senior Management.

The Composition of the Nomination and Remuneration Committee (reconstituted in March 2018 due toresignation of Mr. Masaki Nakajima) and the details of Meetings attended by the members during theyear are given below :


Mr. P. K. Nanda, Chairman Independent, Non-Executive 4Mr. S. K. Tuteja Independent, Non-Executive 4Mr. Masaki Nakajima Non-Executive 4(ceased w.e.f. 23.03.2018)Mr. Gota Iwanami Non-Executive NA(appointed w.e.f. 23.03.2018)

During the year, four meetings of the Committee were held on 10th May, 2017, 10th August 2017,9th February, 2018 and 23rd March 2018.Nomination and Remuneration Policy:Nomination and Remuneration Policy is in place for Directors, KMP and other employees, in accordancewith the provisions of the Act and Listing Regulations. The policy is part of Directors' Report.The criteria for performance evaluation of the Directors is covered in Nomination and RemunerationPolicy of the Company.Remuneration of Directors:Remuneration paid to Whole-time Directors is decided by the Board on the recommendations of theNomination and Remuneration Committee and approved by the shareholders at Annual General Meetings.Independent Directors are paid sitting fee of Rs. 50,000 per meeting for attendance at Board meetings(revised from Rs. 30,000 per meeting w.e.f. 1st April 2017 as approved by the Board of Directors in theBoard Meeting held on 10th August 2017) and Rs. 30,000 per meeting for attendance at CommitteesMeetings and reimbursement of expenses incurred for attending such meetings.

At the 32nd Annual General Meeting, held in August, 2016, the shareholders had authorized the Boardof Directors for payment of commission, a sum not exceeding one percent of the Net profits of the Company

19

per annum, computed in accordance with the provisions of the Companies Act, 2013, to the IndependentDirectors of the Company, for each financial year commencing from 1st April, 2016.

Apart from the above stated, there have been no other material pecuniary relationships or transactionsby the Company with Non-executive directors during the year.

Following are the details of Directors remuneration paid in 2017-18.

Whole-time Directors (Amount in Rs.)Name of Director Salary Allowances Commission Contribution Other Stock Total Service

(Basic & DA) (including for the to Provident Perqui- Option ContractHRA, Leave FY 2016-17 and sites (Tenure)

Trave & other FundsSpecial

Allowances)

Eiichi Seto 6,300,000 - 6,300,000 - 1,742,592 - 14,342,592 UptoManaging Director & CEO 25.12.2018

(Refer Note a)

Gopal Bansal 7,800,000 2,900,000 6,000,000 1,836,000 188,425 - 18,724,425 UptoWhole-time Director & CFO 10.02.2019

Kei Katayama 686,452 - - - 222,925 - 909,377 Ceased w.e.fDirector - R&D 25.05.2017

Takahiro Imai 3,873,548 - - - 503,321 - 4,376,869 ceased w.e.f.Director - R&D (Isuzu 28.04.2018.Products & Projects) (Refer Note b)

Note:

a) Resigned from the post of MD & CEO w.e.f. 10.08.2018. However, he will continue as a Non-Executive Director.

b) Appointed w.e.f. 26.05.2017 and resigned from the post of Director - R&D w.e.f. 28.04.2018. However, he iscontinuing as a Non-Executive Director.

c) No notice period and severance fee is payable to any Director.

d) Approval from the Shareholders by way of a special resolution is being sought at the ensuing Annual GeneralMeeting for payment of managerial remuneration as Minimum Remuneration to Managing Director & CEO andWhole-time Director & CFO in view of inadequacy of profits and ratification of payment of excess remunerationaggregating to Rs. 44.18 lacs paid during financial year ended 31st March, 2018.

Non-Executive Independent Directors (Amount in Rs.)

Name of Director Sitting Fees Commission^

Mr. S.K. Tuteja 8,20,000 8,00,000Mr. P.K. Nanda 5,80,000 8,00,000Mr. A.K. Thakur 4,60,000 8,00,000Mr. Sudhir Nayar 4,60,000 8,00,000Dr. (Mrs.) Vasantha S. Bharucha 3,70,000 8,00,000

Note: ̂ Related to financial year 2016-17 and paid in financial year 2017-18.

2020

Corporate Social Responsibility Committee

The Company has constituted a Corporate Social Responsibility (CSR) Committee as required underSection 135 of the Companies Act, 2013.

Terms of reference of the Committee, inter alia, includes :

• Formulate and recommend to the Board, a CSR Policy covering the activities to be undertaken bythe Company as specified in Schedule VII of the Companies Act 2013;

• Recommend the amount of expenditure to be incurred on the CSR activities;

• Review the CSR activities of the Company from time to time and institute a transparent monitoringmechanism for CSR activities.

The Board has adopted a Policy on CSR recommended by the Committee and is placed on the Company'swebsite www.smlisuzu.com

The annual report on CSR activities, for fiscal 2017-18, forms a part of Directors’ Report.

The composition of the CSR Committee and details of meetings attended by the members during theyear are given below :

Name of the Member Category No. of meetings attended

during 2017-18

Mr. S. K. Tuteja, Chairman Independent, Non-Executive 3

Dr. (Mrs.) Vasantha S. Bharucha Independent, Non-Executive 3

Mr. Eiichi Seto Executive (Managing Director & CEO) 3


During the year three meetings were held on 10th May 2017, 10th August 2017 and 23rd March 2018.

Risk Management Committee

The Committee is entrusted with the functions of overseeing the efficacy of risk management frameworkof the Company, including mitigation measures taken by management, advising thereon and appropriatelyreporting to the Board.

The composition of the Risk Management Committee and the details of meetings attended by the membersduring the year are given below:


21


Mr. P. K. Nanda, Chairman Independent, Non-Executive 2

Mr. A. K. Thakur Independent, Non-Executive 2

Mr. Sudhir Nayar Independent, Non-Executive 2

Mr. Pankaj Bajaj Non -Executive 2


During the year, two meetings were held on 9th August 2017 and 22nd March 2018.

DISCLOSURES

1. Details of General Meetings

(i) Annual General Meetings :–

Financial Year Date Time Venue Special Resolutions passed

2014-15 24.09.2015 01:30PM Village Asron, NilDistt. Shahid Bhagat Singh Nagar

(Nawanshahr), Punjab

2015-16 05.08.2016 03:30PM Village Asron, NilDistt. Shahid Bhagat Singh Nagar

(Nawanshahr), Punjab

2016-17 22.09.2017 01:00PM Village Asron, Appointment of Mr. Takahiro ImaiDistt. Shahid Bhagat Singh Nagar as Whole-time Director designated

(Nawanshahr), Punjab as Director - R&D (Isuzu Products &Projects)

Pursuant to the provisions of Section 110 of the Companies Act, 2013, there was no matter requiredto be dealt by the Company to be passed through postal ballot.

(ii) Extraordinary General Meeting:No extraordinary general meeting was held during financial year 2017-18.

2. Transactions with related partiesThe Company has adopted a policy to deal with related party transactions and during the year there were nomaterial related party transactions made by the Company that would have required shareholders approval.The Company has not entered into any transaction of material nature that may have any potential conflictwith the interest of the Company. The details of the related party transactions as per Ind AS 24 'RelatedParties Disclosures' are set out in note 37 to the Financial Statements.

2222

The Policy on Related Party Transactions is uploaded on the Company's website and can be assessed atthe web link : http://smlisuzu.com/Financials/RPTPolicy.aspx

3. Details of non-compliance

There has neither been any non-compliance of any legal provision of applicable law nor any penalty, strictureimposed by the Stock Exchanges or SEBI or any other authorities, on any matters related to capital marketduring the last three years.

4. Whistle Blower Policy/Vigil Mechanism

The Company has adopted a whistle blower policy, to provide formal mechanism to the Directors andEmployees to report their concerns about unethical behaviour, actual or suspected fraud or violation of theCompany's Code of Conduct or ethics policy. It provides for adequate safeguards against victimization ofDirectors and Employees who avail of the mechanism and provides for direct access to the Chairman of theAudit Committee.

No instance has been reported when any person was denied access to the Audit Committee.

Whistle Blower Policy of the Company is available on the Company's website at the web link:http://smlisuzu.com/Financials/WhistleBlowerPolicy.aspx

5. Code for prevention of Insider Trading Practices

In compliance with SEBI's Regulations on prevention of insider trading, the Company has instituted acomprehensive Code of Conduct for prevention of insider trading. The Code lays down guidelines andprocedures to be followed and disclosures to be made, by Designated Persons, while dealing with shares ofthe Company and cautioning all concerned of the consequences of violations.

6. Accounting treatment

In preparation of the Financial Statements, the Company has followed the Indian Accounting Standards(Referred to as Ind AS) prescribed under Section 133 of the Companies Act, 2013 as notified under theCompanies (Indian Accounting Standards) Rules, 2015, as amended, to the extent applicable. The significantaccounting policies are set out under Note 2 of the Financial Statements for the year ended 31st March2018.

7. Means of Communication

(a) Publication of results

Quarterly, half-yearly and annual financial results of the Company are published in English and onevernacular language newspaper having wide circulation viz., Financial Express, Indian Express andPunjabi Tribune.

(b) Website and News Releases:

The Company's website www.smlisuzu.com displays the information, prescribed to be made availableon website of the Company under the Listing Regulations, which inter alia includes - details of businessof the Company, terms and conditions of independent directors, composition of Board committees,policies adopted by the Company, shareholding pattern, presentations made to the Analysts / Institutionalinvestors, announcements / disclosures made by the Company, notices published in the newspapers,status of unclaimed dividend, Annual Reports, quarterly and Annual Financial results, contact for investorgrievances, etc.

http://smlisuzu.com/Financials/RPTPolicy.aspx

http://smlisuzu.com/Financials/WhistleBlowerPolicy.aspx


23

(c) Stock Exchanges

The Company makes timely disclosures of necessary information to Stock Exchanges - BSE Limitedand the National Stock Exchange of India Limited, where the Company's shares are listed, in terms ofthe Listing Regulations and other Rules and regulations issued by SEBI, electronically through at theirrespective web-based portals - BSE Listing center and NEAPS (NSE Electronic Application ProcessingSystem).

8. Management Discussion and Analysis Report

Management Discussion and Analysis Report has been attached to Directors’ Report.

9. Compliance with Mandatory Requirements

The Company has complied with all the mandatory requirements of the Code of Corporate Governance asstipulated under Listing Regulations.

The Company has also complied with the requirements specified in Regulations 17 to 27 and clauses (b) to(i) of the Regulation 46(2) of the Listing Regulations.

10. Adoption of discretionary requirements

i) The Board

The Company does not maintain the office of the Non-Executive Chairman but he is allowedreimbursement of expenses incurred in performance of his duties.

ii) Shareholder Rights

The Company regularly publishes its quarterly and annual results in Newspapers in Regional languageand English language having wide circulation as required under the Listing Regulations. These resultsare also available on the Company's website www.smlisuzu.com . The Annual Report containing AuditedFinancial Statements, Directors' Report, Auditors' Report and other important information is circulatedto the Members and is also displayed on the Company's website www.smlisuzu.com

iii) Modified opinion(s) in Audit Report

For the financial year under review, there is no audit qualification in the Company's financial statements.The Company continues to adopt best practices to ensure regime of unqualified financial statements.

iv) Separate posts of Chairman and CEO

The post of the Non-Executive Chairman of the Board is separate from that of the Managing Director &CEO.

v) Reporting of Internal Auditor

The Internal Auditor of the Company periodically reports to the Audit Committee.

11. Policy on determining Material Subsidiary

The Company has no subsidiary.



2424

SHAREHOLDERS’ INFORMATION1. Annual General Meeting

Date : 9th August, 2018 (Thursday)

Time : 3:00 P.M.

Venue : SML Isuzu LimitedVillage Asron, Distt. Shahid Bhagat Singh Nagar, (Nawanshahr),Punjab-144 533

2. Calendar (tentative) for Financial Results

The Financial year covers the period from 1st April to 31st March

Quarter ending 30th June, 2018 : 1st/2nd week of August, 2018

Quarter ending 30th Sept., 2018 : 1st/2nd week of November, 2018

Quarter ending 31st Dec., 2018 : 1st/2nd week of February, 2018

Year ending 31st March 2019 : May, 2019

3. Book Closure : 3rd August, 2018 to 9th August, 2018 (both days inclusive)

4. Dividend Payment date : shall be paid/dispatched on or before 24th August, 2018

5. Listing on Stock Exchanges : BSE Limited (BSE)Phiroze Jeejeebhoy Towers,Dalal Street, Mumbai-400 001

National Stock Exchange of India Limited (NSE)Exchange Plaza, 5th Floor,Plot no. C/1, G BlockBandra- Kurla ComplexBandra (E)Mumbai - 400051

Listing fee for FY 2018-19 for both these stock exchanges has been paid.

6. Stock Code : BSE -505192 NSE - SMLISUZU

7. CIN : L50101PB1983PLC005516

8. Dematerialisation and Liquidity of Shares:

Trading in Equity shares of SML ISUZU Limited is permitted only in dematerialized form. The Company has joinedNational Securities Depository Limited (NSDL) and Central Depository Services (India) Ltd. (CDSL) to avail of thisfacility.

As on 31st March, 2018, 97.70% of the Company's shares were held in electronic form.

International Securities Identifications Number: INE294B01019 (with NSDL and CDSL)

For Shares held in electronic form, all instructions regarding change of address, nomination, power of attorney etc.,should be given directly to their Depository Participants and the Company will not be able to entertain any such requestsdirectly from shareholders.

25

9. Stock Market DataMonth wise high and low price for one equity share of Rs.10 at BSE and NSE is given below:

Month BSE Limited (BSE) National Stock Exchange (NSE)

High (Rs.) Low (Rs.) High (Rs.) Low (Rs.)

2017

April 1,385 1,286 1,388 1,292

May 1,369 1,223 1,368 1,220

June 1,280 1,170 1,275 1,160

July 1,215 1,125 1,220 1,120

August 1,136 903 1,135 903

September 988 881 990 880

October 1,079 899 1,079 896

November 1,090 884 1,086 882

December 936 834 936 830

2018

January 960 839 948 836

February 861 775 862 775

March 815 728 820 731

10. Stock Price Performance

SML ISUZU Ltd. Share Price performance relative to S&P BSE Sensex

90

100

110

120

Pric

es (I

ndex

ed to

100

)

SML share Price Vs S&P BSE Sensex

50

60

70

80

90

Apr-

17

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17

Oct

-17

Nov

-17

Dec-

17

Jan-

18

Feb-

18

Mar

-18

Pric

es (I

ndex

ed to

100

)

MonthSML Share Price S&P BSE Sensex

2626

SML ISUZU Ltd. Share Price performance relative to NSE Nifty

Note: Above comparison is based on the month end closing share price of SML Isuzu Limited and BSE/NSE Index.

11. Transfer System for physical shares:

Share transfers are being registered and dispatched within the stipulated timeline from the date of receipt, if the documentsare clear in all respect. The Company obtains half yearly certificate of compliance, with respect to issue of sharecertificates, from a Company Secretary in Practice as required under Regulation 40(9) of the Listing Regulations andfiles a copy of the said certificate with Stock Exchanges.

Total number of shares transferred during 2017-18 was 5,069 (Previous Year 4,950)

Income-tax PAN mandatory for Transfer / Transmission / Deletion / Transposition of securities held in physicalform.

12. Transfer of unclaimed dividends to the Investor Education and Protection Fund (IEPF)

Pursuant to the provisions of Section 124 of the Companies Act, 2013 and Investor Education and Protection FundAuthority (Accounting, Audit, Transfer and Refund) Rules, 2016 read with the relevant circulars and amendments thereto('IEPF Rules'), the amount of dividend remaining unpaid or unclaimed for a period of seven years from the due date isrequired to be transferred to the Investor Education and Protection Fund (IEPF), constituted by the Central Government.Accordingly, the Company has transferred the unclaimed dividends for and upto the Financial Year ended 31st March2010 to IEPF. Members who have not encashed the dividend warrant(s) so far from financial year 2010-11 onwards arerequested to send their claims to the Company. The Company has uploaded the information of unclaimed / unpaiddividend lying with the Company on the website of the Company ( www.smlisuzu.com ).

110

130

150

Pric

es(In

dexe

d to

100

)

SML share Price Vs NSE Nifty

50

70

90

110

Apr-1

7

May

-17

Jun-

17

Jul-1

7

Aug-

17

Sep-

17

Oct

-17

Nov

-17

Dec-

17

Jan-

18

Feb-

18

Mar

-18

Pric

es(In

dexe

d to

100

)

MonthSML Share Price NSE Nifty


27

13. Transfer of shares Investor Education and Protection Fund (IEPF) relating to dividend which have remainedunclaimed for seven consecutive years to

Pursuant to the provisions of IEPF Rules, all shares in respect of which dividend has not been paid or claimed for sevenconsecutive years shall be transferred by the Company to the designated Demat Account of the IEPF Authority ('IEPFAccount'). During FY 2017-18, the Company had transferred 1,60,264 equity shares (in respect of FY 2008-09 andFY 2009-10) to the IEPF Account after following the prescribed procedure.

Further, all the shareholders who have not claimed/ en-cashed their dividends during the last seven consecutive yearsfrom FY 2010-2011 onwards, are requested to claim the same by 12th September 2018. In case valid claim is notreceived by that date, the Company will proceed to transfer the respective shares to the IEPF Account in terms of theIEPF Rules. In this regard, the Company has individually informed the concerned shareholders and also publishednotice in the newspapers as per the IEPF Rules. The details of such shareholders along with the shares due for transferare uploaded on the "Investors Section" of the website of the Company viz. www.smlisuzu.com

However, the shareholder can claim both unclaimed dividend amount and the shares transferred to IEPF from IEPFAuthority by making an application in Form IEPF-5 online on www.iepf.gov.in and sending the physical copy of the sameduly signed (as per registered specimen signature) along with requisite documents enumerated in the said FormIEPF-5 to the Company or to M/s MCS Share Transfer Agent Limited, Registrar and Transfer Agents of the Company forverification of the claim. Shareholder can file only one consolidated claim in a financial year as per the IEPF Rules.

14. Registrar and transfer Agents

M/s MCS Share Transfer Agent Limited Contact person : Mr. S. Biswas

Sri Venkatesh Bhavan, Tele: 011-41406149

F - 65, 1st Floor, Okhla Industrial Area, Fax: 011-41709881

Phase - I, New Delhi - 110020 Email address : [email protected]

All communications regarding share transfers, duplicate share certificates, dividends and change of address etc. may

be addressed to the Registrar, M/s MCS Share Transfer Agent Limited or to the Company Secretary of the Company atSCO: 204-205, Sector-34 A, Chandigarh-160 135.

15. The Company has not issued any GDRs/ADRs/ Warrants or any convertible instruments.

16. The Company being a user of commodities (raw material and components procured for manufacturing of vehicles) isexposed to commodity price risks.

Particulars of the foreign currency exposures, risk associated with the same and hedging activities have been coveredin Note 39 to Financial Statements.

17. Disclosures with respect to the Demat Suspense Account / Unclaimed Suspense Account

As on 31st March 2018, no shares were lying under the Demat Suspense Account/Unclaimed Suspense Account.


http://www.iepf.gov.in

mailto:[email protected]

2828

18. Shareholding Pattern as on 31st March, 2018

20. Plant Location : SML Isuzu LimitedRegistered Office & Works : Village Asron,Distt. Shahid Bhagat Singh Nagar, (Nawanshahr),Punjab - 144 533

21. Address for correspondence (for Investor queries etc.)

Registrar and Share Transfer Agents Compliance Officer & Company SecretaryM/s MCS Share Transfer Agent Limited Mr. Parvesh MadanUnit : SML Isuzu Limited SML Isuzu LimitedSri Venkatesh Bhavan, F-65, 1st Floor SCO: 204-205Okhla Industrial Area, Phase-1 Sector 34 - ANew Delhi-110 020 Chandigarh - 160 135Phone : 011-41406149 Tele : 0172-2647700-10Fax : 011-41709881 Fax : 0172-2615111Email : [email protected] Email : [email protected]

[email protected]

22. Website Address : www.smlisuzu.com

Category No. of Voting No. ofShare- Strength Shares

holders % heldPromoters 1 43.96 6,362,306Foreign Body Corporate 1 15.00 2,170,747Mutual Funds and UTI 7 2.60 3,76,304FI/Banks 3 0.05 7,283Insurance Company 1 0.12 17,000Other Bodies Corporate 760 5.20 7,51,930FII's/NRI's 1,037 1.99 2,87,410Foreign Portfolio Investors 17 5.79 8,37,800Individuals 32,733 24.17 3,498,259Trusts 7 0.01 2,090IEPF Authority MCA 1 1.11 160264NBFC registered with RBI 2 0.00 253TOTAL 34,570 100.00 14,471,646

19. Distribution of Shareholding as on 31st March, 2018

No. of Equity No.of No. of %age ofShares held Share- Shares Share-

holders holding

1-500 33495 2117668 14.63

501-1,000 601 461664 3.20

1,001-2,000 268 391809 2.70

2,001-3,000 71 179320 1.24

3,001-4,000 30 105853 0.73

4,001-5,000 19 87471 0.60

5,001-10,000 36 273321 1.89

10,001-50,000 38 792570 5.48

50,001-100,000 4 254839 1.76

100,000 above 8 9807131 67.77

TOTAL 34570 14,471,646 100.00





29

ANNEXURE A TO DIRECTORS’ REPORT

NOMINATION AND REMUNERATION POLICY OF THE COMPANY

Introduction

Section 178 of the Companies Act, 2013 and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015(erstwhile Clause 49 of the Listing Agreement), together with Guiding Principles set out therein, require the Nomination andRemuneration Committee ('NRC') to recommend to the Board a policy in respect of selection, appointment, performanceevaluation and removal of Independent Directors and other Directors, including whole time directors, Key Management Personnel('KMP') and other senior management, and a policy of remuneration to them.

Accordingly, as proposed by the NRC and in order to formalise the Company's current and ongoing policy and practices for theabove mentioned objectives in a more structured manner, the Board sets out a policy framework as under.

General

The composition of the Board of Directors, the appointment of Directors, their number, duration of appointment, their remunerationand their removal, where appropriate, will always be in accordance with the Companies Act and any other applicable law, theListing Agreement and the Memorandum & Articles of Association.

The Company will continue its policy of non-discrimination on grounds of race, ethnicity, language and religion or caste inappointment, promotion and remuneration of employees.

NRC will monitor the policy and processes as set out herein on behalf of the Board.

Composition of the Board

The Board is composed of Independent Directors and other Directors, both men and women, with diverse experience indifferent industries and professions, both in India and other countries, Managing Director and whole time directors holdingexecutive positions in the Company with relevant expertise and experience. The process of appointment is transparent backedby appropriate documentation.

Independent Directors

The law and good governance requires the Company to appoint a third of its members of the Board (as defined in the CompaniesAct) to be independent.

Principal criteria for selecting an independent director are that he/she:

– must have considerable experience at senior levels in business, industry, professions, government or industry/ financerelated institutions in India and/or other countries;

– has no conflict of interest, including any material or pecuniary interest, except for remuneration received as approved bylaw and/or shareholders;

– has the ability to evaluate and advise on strategy and business of the Company;

– has the ability to challenge and evaluate performance of the management, financial performance and risks in the business;

– has the ability to relate and advise on the effects of macro level economic, industrial and political environment anddevelopments, including government policies, on the Company's affairs and management of its business.

The remuneration of Independent Directors, which may include sitting fees and commission on profit, is determined by theBoard on recommendation of NRC and is subject to shareholders' approval and as required by law.

The maximum term of appointment of an Independent Director is determined by law and as approved by the Shareholders.

3030

Performance of an Independent Director is evaluated annually by the NRC and the Board, excluding the director being evaluated,according to the evaluation criteria set by the Board.

An independent Director may be removed from the Board by a majority decision by its members for sufficient reasons whichmay include a conflict of interest, lack of attendance at meetings of the Board and its Committees and inadequate performanceat such meetings as evaluated by the Board annually or otherwise.

Performance evaluation for an Independent Director is principally based on the following factors:

1. Attendance at meetings of the Board, Committees of which he / she is a member and of Shareholders;

2. Compliance with the Code of Conduct;

3. Constructive participation in the proceedings of the Board and Committees;

4. Evaluation and advice relating to the Company's performance, both financial and commercial;

5. Awareness of the Company's operations and organisation, applicable corporate and other major laws and regulations,fiduciary responsibilities and matters relating to Stock Exchanges, SEBI and corporate governance generally;

6. Adherence to independence, no-conflict of interest and protection of interests of stakeholders.

Other Directors

The Board may invite any person to join as member who may not qualify as Independent Director and is not an employee of theCompany. For the sake of clarity and only for this policy framework such director is referred herein as 'non-executive director'(NED).

The criteria of selection of NED may include, among others, expertise or specialized knowledge in one or more areas of theCompany's activities, knowledge of similar or related activities gained in the business of the promoter, technology provider orother business associate.

The duration of the term of appointment, remuneration and removal of NED is at the absolute discretion of the Board, butalways according to law and the Listing Agreement, and under no circumstance can the remuneration to a NED exceeds thatof any Independent Director.

Performance of an NED is evaluated annually by the NRC and the Board, excluding the director being evaluated, according tothe evaluation criteria set by the Board.

Performance evaluation for an NED is principally based on the same factors as for Independent Directors and, in addition, onhis/her contribution in respect of the specific areas of expertise and knowledge where applicable.

Remuneration of NED, where payable, is recommended by NRC on a case by case basis.

Key Managerial Personnel ('KMP') and Senior Management

This group comprises:

1. Managing Director/Chief Executive Officer 'CEO'

2. Chief Financial Officer 'CFO'

3. Company Secretary

4. Senior Executives included in this Group by the Board from time to time, currently: Executive Directors responsible for,Marketing, Works, R&D, referred to herein as 'ED'

31

Managing Director

Appointment of the Managing Director/CEO is made by the Board on the recommendation of NRC.

Criteria for selection of Managing Director are knowledge of the business of the Company, experience in that business or anyrelated business, leadership qualities, incisive understanding of the market, understanding socio-economic and political milieuin which the Company operates and effects thereof on the Company's policies and operations, objective setting and implementationof such objectives, ability to interact with the Board, ability to communicate effectively with employees, shareholders and otherstakeholders and other publics.

Remuneration of Managing Director is determined by the Board on recommendation of NRC and approved by Shareholders and/or Central Government as required by law. While recommending remuneration payable NRC will consider, inter alia the factorsas set out below for evaluation of performance.

Evaluation criteria for CEO's performance are: development and implementation of the Company strategy, achievement ofshort and long term plans, overall financial performance of the Company, effectiveness of management controls and systemsin the Company, demonstrated communication skills and continued assessment of the effectiveness of organization structure,and protection of the Company's wealth and good standing.

Key Managerial Personnel and Senior Management

Whole-time Director

Selection, appointment and removal of KMP and Senior Management personnel is the responsibility of the Managing Director.

However, NRC in consultation with the Managing Director considers and recommends to the Board the appointment of awhole-time director from amongst the KMP and Senior Management.

Criteria for such selection and appointment as a director principally are:

– the need felt by the Board for expertise and experience of the individual to be available for Board deliberations as amember.

– as a reward/promotion for specially good performance and contribution to the Company's business.

Remuneration of a whole time director is determined by the Board on recommendation of NRC and approved by Shareholdersand / or Central Government as required by law. While recommending remuneration payable, NRC considers the remunerationstructure for senior management and additional responsibilities as a member of the Board.

Performance evaluation of a whole time director is made by the Managing Director in respect of his executive/operationalresponsibilities and by NRC on his performance at the Board on criteria similar to that set out for NED.

Evaluation of KMP and Senior Management is made annually by the Managing Director, principally based on both quantitativeand qualitative performance in their specific area of executive responsibility, financial and other objectives as set in annualbusiness plans, effectiveness of their leadership, management of people reporting to them, implementation of systems andcontrols in their operations, their contribution in the deliberations of executive and management groups and positive interactionwith other executives and employees.

The remuneration of these personnel is determined by the Managing Director in consonance with the Company's policy to givefair managerial compensation taking account of their performance and contribution to the Company's overall performance.

The Company's compensation policy provides for variable content related to performance in remuneration package for allmanagerial personnel.

NRC develops its process and forms/matrices for performance evaluation from time to time as it deems appropriate.

3232

ANNEXURE B TO DIRECTORS' REPORT

EXTRACT OF ANNUAL RETURNAs on the financial year ended on 31st March, 2018

[Pursuant to Section 92(3) of the Companies Act, 2013 andRule 12(1) of the Companies (Management and Administration) Rules, 2014]

FORM NO. MGT-9

I. REGISTRATION AND OTHER DETAILS:

i) CIN L50101PB1983PLC005516

ii) Registration Date 26.07.1983

iii) Name of the Company SML ISUZU LIMITED

iv) Category/Sub-Category of the Company Public Limited Company (Limited by Shares)

v) Address of the Registered Office and Village Asron, District Shahid Bhagat SinghContact details Nagar (Nawanshahr), Punjab-144 533

Tel: 01881-270255 Fax: (91) 1881-270223Website: www.smlisuzu.comEmail : [email protected]

vi) Whether Listed Company Yes

vii) Name, Address and Contact details of M/s MCS Share Transfer Agent LimitedRegistrar and Share Transfer Agents Sri Venkatesh Bhawan

F-65, 1st Floor, Okhla Industrial Area,Phase-1, New Delhi-110020Tel: +91 11 41406149 Fax:+91 11 41709881Email : [email protected]

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the Company shall be stated:-

Sr.No. Name and Description of NIC Code of the Product/ % to total turnover of themain Products / Services Service Company

1 Trucks 29102 36%

2 Bus 29109 56%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sumitomo Corporation, Japan, a Body Corporate, is the Promoter of the Company and holds 43.96% shareholding of theCompany. In terms of the provisions of Section 2(76) the Companies Act, as amended, the Company is an Associate Companyof Sumitomo Corporation.




33

IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i) Category-wise Share Holding

Sr. Category of No. of Shares held at the beginning No. of shares held at the end of the %No. Shareholders of the year (as on 01.04.2017) year (as on 31.03.2018) Change

Demat Physical Total %age Demat Physical Total %age duringof Total of Total theShares Shares year

(A) Promoter(1) Indian(a) Individuals/ HUF – – – – – – – – –

(b) Central Govt. – – – – – – – – –(c) State Govt(s) – – – – – – – – –

(d) Bodies Corp. – – – – – – – – –(e) Banks/FI – – – – – – – – –

(f) Any Other – – – – – – – – –Sub-Total (A)(1) – – – – – – – – –

(2) Foreign(a) NRIs-Individuals – – – – – – – – –

(b) Other Individuals – – – – – – – – –(c) Bodies Corp. 6362306 – 6362306 43.96 6362306 – 6362306 43.96 –

(d) Banks/FI – – – – – – – – –(e) Any Other – – – – – – – – –

Sub-Total (A)(2) 6362306 – 6362306 43.96 6362306 – 6362306 43.96 –Total Shareholding of 6362306 – 6362306 43.96 6362306 – 6362306 43.96 –Promoter (A)= (A)(1)+(A)(2)

(B) Public Shareholding(1) Institutions(a) Mutual Funds 459930 1550 461480 3.19 375204 1100 376304 2.60 -0.59(b) Banks/FI 5933 850 6783 0.05 6433 850 7283 0.05 0.00

(c) Central Govt. – – – – – – – – –(d) State Govt.(s) – – – – – – – – –

(e) Venture Capital Funds – – – – – – – – –(f) Insurance Companies – – – – 17000 – 17000 0.12 0.12

(g) FIIs – – – – – – – – –(h) Foreign Venture Capital Funds – – – – – – – – –

(i) Others – – – – – – – – –Foreign Portfolio Investors 606228 – 606228 4.19 837800 – 837800 5.79 1.60

Sub-Total (B)(1) 1072091 2400 1074491 7.43 1236437 1950 1238387 8.56 1.13

3434

(2) Non Institutions(a) Bodies Corp.(i) Indian 949727 1851 951578 6.58 750829 1101 751930 5.20 -1.38(ii) Overseas 2170747 – 2170747 15.00 2170747 – 2170747 15.00 –(b) Individuals(i) Individual shareholders holding 2470253 400562 2870815 19.84 2730695 272368 3003063 20.75 0.91

nominal share capital uptoRs. 1 lakh

(ii) Individual shareholders holding 740984 – 740984 5.11 495196 – 495196 3.42 -1.69nominal share capital in excessof Rs. 1 lakh

(c) Any Other(i) NBFCs Registered with RBI 10263 – 10263 0.07 253 – 253 – -0.07(ii) Trust & Foundation 2190 – 2190 0.02 2090 – 2090 0.01 -0.01(iii) Cooperative Socities – – – – – – – – –(iv) Non Resident Individual 181922 106350 288272 1.99 229760 57650 287410 1.99 –(v) IEPF MCA – – – – 160264 – 160264 1.11 1.11

Sub-Total (B)(2) 6526086 508763 7034849 48.61 6539834 331119 6870953 47.48 -1.13Total Public Shareholding 7598177 511163 8109340 56.04 7776271 333069 8109340 56.04 –(B)= (B)(1)+(B)(2)

(C) Shares held by custodian – – – – – – – – –for GDRs & ADRsGRAND TOTAL (A+B+C) 13960483 511163 14471646 100.00 14138577 333069 14471646 100.00 –

(ii) Shareholding of Promoters

Sr. Shareholder’s Shareholding at the beginning of Shareholding at the end of % change No. Name the year (as on 01.04.2017) the year (as on 31.03.2018) in share-

No. of % of total % of No. of % of total % of holdingshares shares of shares Shares shares of shares during

the pledged/ the pledged/ the yearCompany encumb- Company encumb-

ered to ered tototal total

shares shares

1 Sumitomo Corporation, 6362306 43.96 – 6362306 43.96 – NilJapan

TOTAL 6362306 43.96 – 6362306 43.96 – Nil

Sr. Category of No. of Shares held at the beginning No. of shares held at the end of the %No. Shareholders of the year (as on 01.04.2017) year (as on 31.03.2018) Change

Demat Physical Total %age Demat Physical Total %age duringof Total of Total theShares Shares year

35

(iii) Change in Promoter’s Shareholding

Sr. Shareholding at the Cumulative No. beginning of the year Shareholding

(as on 01.04.2017) during the year

No. of % of total shares No. of % of total sharesShares of the Company Shares of the Company

1. At the beginning of the year 6362306 43.96 6362306 43.96

2. Date wise Increase / Decrease in Nil Nil Nil NilPromoters Share holding during the year

3. At the end of the year 6362306 43.96 6362306 43.96

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs) Sr. Name of Shareholders Shareholding at the Increase / (Decrease) in shareholding Cumulative No. beginning of the year Shareholding during

(as on 01.04.2017) the yearNo. of % of Date Reason No. of % of No. of % ofShares total Shares total shares total

shares shares sharesof the of the of the

Company Company Company

1 ISUZU MOTORS LIMITED, 2170747 15.00% 31.03.2018 At the end of year 2170747 15.00%JAPAN

2 NATIONAL WEST 300836 2.08% – –MINISTER BANK PLC ASTHE TRUSTEE OF THEJUPITER INDIA FUND

07.04.2017 Purchase of shares 11261 0.08% 312097 2.16%






31.03.2018 At the end of Year 475218 3.28%

3 SACHIN BANSAL 275000 1.90%



08.09.2017 Sale of shares 2206 0.02% 334794 2.31%

15.09.2017 Sale of shares 32794 0.22% 302000 2.09%

03.11.2017 Sale of shares 2000 0.02% 300000 2.07%

3636

10. 11.2017 Sale of shares 47994 0.33% 252006 1.74%

17.11.2017 Sale of shares 10159 0.07% 241847 1.67%

24.11.2017 Sale of shares 9872 0.07% 231975 1.60%

01.12.2017 Sale of shares 9017 0.06% 222958 1.54%

08.12.2017 Sale of shares 63912 0.44% 159046 1.10%

15.12.2017 Sale of shares 9046 0.06% 150000 1.04%




31.03.2018 At the end of Year 229999 1.59%

4 BIRLA SUN LIFE TRUSTEE 144887 1.00% 31.03.2018 At the end of year 144887 1.00%COMPANY PRIVATE

LIMITED A/C BIRLA SUN

LIFE MNC FUND

5 UTI-MID CAP FUND 143536 0.99%

26.01.2018 Sale of shares 370 0.00% 143166 0.99%

02.02.2018 Sale of shares 2214 0.02% 140952 0.97%

31.3.2018 At the end of year 140952 0.97%

6 JUPITER SOUTH ASIA 102069 0.71%

INVESTMENT COMPANY

LIMITED - SOUTH ASIA

ACCESS FUND




23.06.2017 Sale of shares 14147 0.10% 124183 0.86%

09.02.2018 Sale of shares 1425 0.01% 122758 0.85%

31.03.2018 At the end of year 122758 0.85%

Sr. Name of Shareholders Shareholding at the Increase / (Decrease) in shareholding Cumulative No. beginning of the year Shareholding during




37

7 AXIS MUTUAL FUND 95305 0.66%TRUSTEE LIMITED A/CAXIS MUTUAL FUND A/CAXIS SMALL CAP FUND

02.06.2017 Sale of shares 4802 0.03% 90503 0.63%

18.08.2017 Sale of shares 5900 0.05% 84603 0.58%

02.02.2018 Sale of shares 4284 0.02% 80319 0.56%

16.03.2018 Sale of shares 5010 0.04% 75309 0.52%

23.03.2018 Sale of shares 2759 0.02% 72550 0.50%

31.03.2018 At the end of year 72550 0.50%

8 MV SCIF MAURITIUS 54798 0.38%










07.07.2017 Sale of shares 3858 0.03% 71550 0.50%

21.07.2017 Sale of shares 1286 0.01% 70264 0.49%


15.09.2017 Sale of shares 2588 0.02% 68547 0.48%

22.09.2017 Sale of shares 2739 0.02% 65808 0.46%












3838

22.12.2017 Sale of shares 879 0.01% 72393 0.50%

12.01.2018 Sale of shares 612 0.00% 71781 0.50%

09.02.2018 Sale of shares 3060 0.02% 68721 0.48%


16.03.2018 Sale of shares 1226 0.01% 67812 0.47%

23.03.2018 Sale of shares 3283 0.02% 64529 0.45%

31.03.2018 At the end of year 64529 0.45%

9 EMERGING MARKETS 60426 0.42%CORE EQUITY PORTFOLIO(THE PORTFOLIO) OFDFA INVESTMENTDIMENSIONS GROUPINC(DFAIDG)

14.04.2017 Sale of shares 872 0.01% 59554 0.41%


31.03.2018 At the end of year 60112 0.41%

10 SACHIN BANSAL 150000 1.04%







08.09.2017 Sale of shares 11520 0.08% 190000 1.31%

15.09.2017 Sale of shares 19353 0.13% 170647 1.18%

22.09.2017 Sale of shares 20389 0.14% 150258 1.04%

29.09.2017 Sale of shares 4132 0.03% 146126 1.01%


03.11.2017 Sale of shares 98000 0.68% 50000 0.35%

31.03.2018 At the end of year 50000 0.35%





39

(v) Shareholding of Directors and Key Managerial Personnel

Sl. Shareholding at the Cumulative Shareholding No. beginning of the year (as on 01.04.2017) during the year

No. of shares % of total No. of Shares % of totalshares of the shares of the

Company Company

1 At the beginning of the year None of the Directors & KMP hold shares in the Company

2 Date wise Increase / Decrease in Mr. S.K.Tuteja acquired 1400 shares of the Company (as a gift from his son on 23.08.2017).Shareholding during the year

3 At the end of the year Mr. S.K.Tuteja holds 1400 shares in the Company

V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment(Rs. in lakhs)

Secured Loans Unsecured Deposits Total excluding Loans Indebtedness

deposits

Indebtedness at the beginning ofthe financial year (as on 01.04.2017)

i) Principal Amount 511.29 3,352.58 Nil 3,863.87

ii) Interest due but not paid Nil Nil Nil Nil

iii) Interest accrued but not Nil Nil Nil Nil

Total (i+ii+iii) 511.29 3,352.58 Nil 3,863.87

Change in Indebtedness during the financial year

- Addition Nil 37,663.92* Nil 37,663.92

- Reduction 511.29 20,000.00 Nil 20,511.29

Net Change (511.29) 17,663.92 Nil 17,152.63

Indebtedness at the end of thefinancial year (as on 31.03.2018)

i) Principal Amount Nil 21,016.50 Nil 21,016.50

ii) Interest due but not paid Nil Nil Nil Nil

iii) Interest accrued but not due Nil Nil Nil Nil

Total (i+ii+iii) Nil 21,016.50 Nil 21,016.50

* Includes ECB Loan of Rs. 10,663.92 lacs (including foreign exchange fluctuation loss amounting to Rs. 163.92 lacs)

4040

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL (for FY 2017-18)

A. Remuneration to Managing Director, Whole-time Directors and/or Manager (Rs. in lakhs)

Sl. Particulars of Remuneration Name of MD/WTD/Manager Total

No. Eiichi Seto Gopal Bansal Sub Total (a) Takahiro Imai Kei Katayama Sub Total (b)Amount

Managing Whole-time (Refer Note Director Director (Refer Note(a+b)

Director & Director & (a) below) R&D (Isuzu R&D# (b) belowCEO CFO Products &

Projects)^

1. Gross salary

(a) Salary as per provisions contained in 63.0 107.0 170.0 38.7 6.9 45.6 215.6section 17(1) of the Income-tax Act, 1961

(b) Value of perquisites u/s 17(2) 17.4 1.8 19.2 5.0 2.2 7.2 26.4Income-tax Act, 1961

(c) Profits in lieu of salary under section 17(3)Income- tax Act, 1961

2. Stock Option – – – – – – –

3. Sweat Equity – – – – – – –

4. Commission – – – – – – –

– as % of profit 16.3 16.3 32.6 - - - 32.6

– others, specify

5. Others (Employer Contribution to PF) 18.4 18.4 - 18.4

Total (A) 96.7 143.5 240.2 43.7 9.1 52.8 293.0

Ceiling as per the Act Note :a) Approval from the Shareholders by way of a special resolution is being sought at the

ensuing Annual General Meeting for payment of managerial remuneration as MinimumRemuneration to Mr. Eiichi Seto and Mr. Gopal Bansal in view of inadequacy of profitsand ratification of payment of excess remuneration aggregating to Rs. 44.18 lakhs paidduring the financial year ended 31 March 2018. In terms of the provisions of theCompanies Act 2013, the amount will be refunded to the Company by the concerneddirectors in case it is not approved by the shareholders. Additionally, commission of 1%of the net profits, computed in accordance with Section 198 of the Companies Act,2013, will be paid to Mr. Eiichi Seto and Mr. Gopal Bansal upon receipt of the aforesaidshareholders approval.

b) Remuneration paid to Mr. Kei Katayama and Mr. Takahiro Imai is within the limitsprescribed under Schedule V of the Companies Act, 2013. (Approval of Shareholdersobtained in the AGM held on 22nd September, 2014 and 22nd September, 2017respectively).

^ appointed as Director-R&D with effect from 26th May, 2017 and resigned with effect from 28th April, 2018.# ceased to be Director with effect from 25th May, 2017.

41

B. Remuneration to other directors (Rs. in lakhs)

Sl. Particulars of Remuneration Name of Directors Total

No. S.K. A.K. P.K. Sudhir Dr. (Mrs.) Amount

Tuteja Thakur Nanda Nayar Vasantha SBharucha

1. Independent Directors• Fee for attending board / committee meetings 8.2 4.6 5.8 4.6 3.7 26.9• Commission 3.0 3.0 3.0 3.0 3.0 15.0• Others

Total (1) 11.2 7.6 8.8 7.6 6.7 41.9 2. Other Non-Executive Directors – – – – – –

Total (2) – – – – – –Total (B)=(1+2) 11.2 7.6 8.8 7.6 6.7 41.9Ceiling as per the Act (for Commission) Rs. 16.3 lakhs (being 1% of the Net Profits of the Company calculated as per Section 198

of the Companies Act, 2013)Total Managerial Remuneration (A+B) Rs. 308.0 lakhs (excluding sitting fee of Rs. 26.9 lakhs)Overall Ceiling as per the Act Not Applicable

C. Remuneration to Key Managerial Personnel other than MD/MANAGER/WTD(Rs. in lakhs)

Sl. Particulars of Remuneration Key Managerial Personnel TotalNo. Parvesh Madan

Company Secretary1 Gross salary

(a) Salary as per provisions 25.59 25.59contained in section 17(1) of theIncome-tax Act, 1961

(b) Value of perquisites u/s 17(2) of the 2.48 2.48Income-tax Act, 1961

(c) Profits in lieu of salary under – –section 17(3) of the Income-tax Act, 1961

2 Stock Option – –

3 Sweat Equity – –

4 Commission

– as % of profit – –

5 Others (Employer Contribution to PF) 1.89 1.89

Total 29.96 29.96

VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:There were no penalties/punishment/compounding of offences for the year ended 31st March 2018.

4242

ANNEXURE C TO DIRECTORS’ REPORT

DETAILS PURSUANT TO THE PROVISIONS OF SECTION 197(12) OF THE COMPANIES ACT,2013 READ WITH RULE 5(1) OF THE COMPANIES (APPOINTMENT AND REMUNERATION OFMANAGERIAL PERSONNEL) RULES, 2014

Relevantclauseu/r 5(1)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

Prescribed Requirement

Ratio of the remuneration of eachdirector to the median remunerationof the employees of the company forthe financial year

Percentage increase in remunerationof each Director, Chief FinancialOfficer, Chief Executive Officer,Company Secretary or Manager, ifany, in the financial year

Percentage increase in the medianremuneration of employees in thefinancial year

Number of permanent employees onthe rolls of the company

Average percentile increase alreadymade in the salaries of employeesother than the managerial personnelin the last financial year and itscomparison with the percenti leincrease in the managerialremuneration and justification thereofand point out i f there are anyexceptional circumstances forincrease in the managerialremuneration

Affirmation that the remuneration is asper the remuneration policy of thecompany

Particulars

- Ratio of the remuneration of Mr. Eiichi Seto, Managing Director &CEO to the median remuneration of the employees-13:1

- Ratio of the remuneration of Mr. Gopal Bansal, Whole-time Director& CFO to the median remuneration of the employees-19:1

- Ratio of the remuneration of Mr. Takahiro Imai, Director- R & D(Isuzu Products & Projects) to the median remuneration of theemployees - 7:1

- Mr. Eiichi Seto, Managing Director & CEO- NIL- Mr. Gopal Bansal, Whole-time Director & CFO -NIL- Mr. Takahiro Imai, Whole-time Director - R & D (Isuzu Products &

Projects) - NIL- Mr. Parvesh Madan, Company Secretary- 13.5%

8.1%

1060

- Average increase in remuneration of Managerial Personnel - 4.5%- Average increase in remuneration of employees other than the

Managerial Personnel - 8.1%

The remuneration is as per the Nomination and Remuneration Policyof the Company, formulated pursuant to the provisions of section 178of the Companies Act, 2013

43

ANNEXURE D TO DIRECTORS' REPORT

ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR) ACTIVITIES FOR THEFINANCIAL YEAR 2017-18

1. A brief outline of the Company's CSR Policy including overview of projects or programsproposed to be undertaken and a reference to the web-link to the CSR Policy and Projects orprograms.

The key thrust areas of Company's policy on CSR, adopted by the Board of Directors in adherenceto Section 135 of the Companies Act, 2013, are - promoting healthcare and sanitation, supportingeducation of girl child and under privileged children, sponsoring vocational educationfor women, etc.

CSR policy has been uploaded on the website of the Company under the web-link:http://smlisuzu.com/Financials/CSRPolicy.aspx

2. The Composition of CSR Committee is as follows:-

As at 31st March 2018, the Corporate Social Responsibility Committee consists of four directors- two independent directors and two executive directors :

i) Mr. S.K. Tuteja, Independent Director as Chairman

ii) Dr. (Mrs.) Vasantha S. Bharucha, Independent Director

iii) Mr. Eiichi Seto, Managing Director & CEO

iv) Mr. Gopal Bansal, Whole-time Director & CFO

3. Average net profit of the Company for last three financial years Rs. 7,524.9 lakhs

4. Prescribed CSR expenditure Rs.150.5 lakhs(two percent of the amount mentioned in item 3 above)

5. Details of CSR spent during the financial year:

a) Total amount to be spent for the financial year Rs. 150.5 lakhs

b) Amount unspent, if any Not applicable

c) Manner in which the amount spent during the financial year is detailed below :-

http://smlisuzu.com/Financials/CSRPolicy.aspx

4444

Sr. CSR Project or Activity Sector in Project or Program Amount Amount spent on the Cumultive AmountNo. Identified which the (1) Local Area or Outlay Projects or Programs Expenditure Spent :

project is Other (Budget) upto the Direct orcovered (2) State and district Project or Direct Overheads reporting through

where projects or Program expendi- period i.e. implementingprograms were wise ture FY 2017-18 Agencyundertaken

1. Education – Amenities for Education 1. Local 62.00 60.86 1.29 62.15 DirectStudents 2. (a) Punjab District-Provided desks, chairs, green board SAS Nagarwater purifiers, water recharge (b) Punjab District -system and constructed Toilets Fatehgarh Sahib

(c) Punjab District -Roopnagar

(d) Chandigarh (UT)

2. Girls Education Education 1. Local 16.00 15.78 0.05 15.83 DirectSupport provided to under 2. (a) Punjab District-priviledged girls students in terms Roopnagarof School Fees, Uniforms & Books b) Chandigarh (UT)

3. Vocational Education Vocational 1. Local 14.00 13.30 0.75 14.05 DirectSetting up/Upgradation of vocational Education 2. (a) Punjab District -training centre for enahancing Roopnagarcomputer skills and fashion (b) Punjab District -designing/tailoring skills of girls/ SAS Nagarwomen (c) Punjab District -

SBS Nagar(d) Chandigarh (UT)

4. Preventive Health Care/Sanitation Preventive 1. Local 15.00 15.31 0.02 15.33 DirectProvided sanitary napkins Healthcare 2. (a) Punjab District -dispensing machines to & Sanitation RoopnagarGovernment Schools and Refuse (b) Punjab District -Collector Bins & Waste Collectors SBS Nagarto Municipal Councils andconstructed community toilet forpublic convenience.

5. Health Camps Preventive 1. Local 6.00 5.40 0.41 5.81 DirectMedical check-up and free Healthcare 2. (a) Punjab District -medicine Fatehgarh Sahib

(b) Punjab District -Roopnagar

(c) Chandigarh (UT)

6. Project - "Jan Swasthya, Preventive 1. Local 3.00 3.00 – 3.00 DirectShiksha & Rog Nivaran" Healthcare 2. Chandigarh (UT)Mobile medical aid primarily forunderprivileged section of the societyand for imparting knowledgetowards preventive healthcare

7. Medical Infrastructure Health care 1. Local 35.00 34.71 0.52 35.23 DirectAmbulances and Blood Collection 2. (a) Punjab District -Van provided to hospitals catering Roopnagarmainly to under-privileged section (b) Punjab District-of society SBS Nagar

(c) Chandigarh (UT)

Total 151.00 148.36 3.04 151.40

RESPONSIBILITY STATEMENTThe implementation and monitoring of Corporate Social Responsibility (CSR) Policy, is in compliance with CSR objectives andPolicy of the Company.

S.K.Tuteja Eiichi SetoChairman, CSR Committee Managing Director & CEODated : 23rd May, 2018

(Rs. in Lakhs)

45

ANNEXURE E TO DIRECTORS' REPORTSECRETARIAL AUDIT REPORT

FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2018[Pursuant to Section 204(1) of the Companies Act, 2013 and

Rule No. 9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014]

Form No. MR-3

To,The Members,SML Isuzu LimitedCIN : L50101PB1983PLC005516Village-Asron, District- NawanshahrPunjab

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to good corporatepractices by SML ISUZU LIMITED (hereinafter called "the Company"). Secretarial Audit was conducted in a manner thatprovided me a reasonable basis for evaluating the corporate conducts/statutory compliances and expressing my opinionthereon.

Based on my verification of the Company's books, papers, minute books, forms and returns filed and other records maintainedby the Company and also the information provided by the Company, its officers, agents and authorized representatives duringthe conduct of secretarial audit, I hereby report that in my opinion, the Company has, during the audit period covering thefinancial year ended on March 31, 2018 complied with the statutory provisions listed hereunder and also that the Company hasproper Board-processes and compliance-mechanism in place to the extent, in the manner and subject to the reporting madehereinafter.

I have examined the books, papers, minute books, forms and returns filed and other records maintained by SML ISUZULIMITED ("the Company") for the financial year ended on March 31, 2018 according to the provisions of:

(i) The Companies Act, 2013 (the Act) and the rules made there under;

(ii) The Securities Contracts (Regulation) Act, 1956 ('SCRA') and the rules made there under;

(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed there under;

(iv) Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of Foreign DirectInvestment, Overseas Direct Investment and External Commercial Borrowings;

(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992('SEBI Act'):

a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011including any amendment thereof.

b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.

c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009-Not applicable as the Company has not issued any securities during the financial year under review.

d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014- Not applicableas the Company has not granted any share based benefits to its employees during the financial year under review.

e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 and ChapterV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015- Not applicable as the Company has not issued any debt securities during the financial year under review.

4646

f) The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993regarding the Companies Act and dealing with client- Not applicable as the Company is not registered as Registrarto an Issue and Share Transfer Agent during the financial year under review.

g) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 including any amendmentthereof- Not applicable as the Company has not delisted any securities from any stock exchange during the financialyear under review.

h) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998- Not applicable as theCompany has not bought back any of its securities during the financial year under review.

(vi) The Motor Vehicles Act, 1988 and the rules made there under (the law which is applicable specifically to the Company,being manufacturer of Commercial Vehicle).

(vii) Other laws applicable to the Company as per the representation given by the Company.

I have also examined compliance with the applicable clauses of the following:

a) Secretarial Standards issued by The Institute of Company Secretaries of India.

b) The SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 being listed with the National StockExchange of India Limited and BSE Limited.

During the financial year under review, the Company has complied with the provisions of the Acts, Rules, Regulations, Guidelines,Standards etc. mentioned above.

Based on my examination and the information received and records maintained, I further report that:

1. The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-ExecutiveDirectors and Independent Directors. The changes in the composition of the Board of Directors that took place during theperiod under review were carried out in compliance with the provisions of the Act.

2. Adequate notice given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were sentwell in advance, and a system exists for seeking and obtaining further information and clarifications on the agenda itemsbefore the meeting and for meaningful participation at the meeting.

3. All decisions are carried on the basis of majority while the dissenting members' views, if any, are captured and recordedas part of the minutes.

4. The Company has proper board processes.

I further report that as per the explanations given to me and the representations made by the Management and relied upon byme there are adequate systems and processes in the Company commensurate with the size and operations of the Company tomonitor and ensure compliance with the applicable laws, rules, regulations and guidelines.

I further report that during the financial year under review, there were no instances of:

(i) Public / Rights / Preferential issue of shares / debentures / sweat equity.

(ii) Redemption / buy-back of securities.

(iii) Decisions taken in pursuance to section 180 of the Companies Act, 2013

(iv) Merger / amalgamation / reconstruction etc.

(v) Foreign technical collaborations.

AJAY K. ARORAA. ARORA & CO.

Place : Chandigarh FCS No. 2191Date : May 10, 2018 C P No.: 993

47

ANNEXURE F TO DIRECTORS' REPORTCONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGOA. CONSERVATION OF ENERGY1. The steps taken or impact on conservation of energy

• Process of replacing old CFL lights / Metal halide lights with LED lights and procurement of new LED lights for newbuildings and shop floor continued.

• Modification in new PTCED line processes to save electrical energy.• Automation of Engine shop AHU, lights and fans at conveyor lines.• Installation of new energy efficient air cooled air compressor in place of water cooled air compressor.

2. The steps taken by the company for utilizing alternate sources of energy• The Company is exploring use of Solar Energy as an alternate source for Hot Water Generator.• More Solar traffic lights introduced at plant

3. Capital investment on energy conservation equipmentsCapital Investment: Rs. 36.03 Lakhs

B. TECHNOLOGY ABSORPTION(i) The efforts made towards technology absorption:

• SML continued its efforts on technology up-gradation in the area of power train & new vehicle development -Higher Power engines (Diesel & CNG) developed meeting BS-IV emission norms. Development of highercapacity Transmission completed and production started.

• Installation of new Effluent Treatment Plant with latest technology completed and commissioned.• Installation of automatic PTCED plant completed and fully operational.• Installation of Robotic Main Framing Station for Cabin Spot Welding• Installation for Robotic Station for Cabin Door Hemming.• Plant layout re-engineering completed.

(ii) The benefits derived like product improvement, cost reduction, product development or import substitution• High power engines &higher capacity transmission will improve the performance of vehicles in Field.• Effluent treatment plant with latest technology will take care of enhanced generation of trade effluent due to

expected increase in production/ change in process and will also help in improving the quality of treatedeffluent (water) used for on-to-land irrigation (Internal Irrigation).

• Benefits of automatic PTCED plant:i) Rust proof capability of truck cabin improved from 320 SST hrs to 1200 SST hrs with consistent quality

by the best in class technology.ii) Uniform paint DFT distribution due to electro-deposit has resulted in highly improved paint gloss.iii) Higher productivity of 12 JPH (Jobs per Hour) from automated line using lean manpower.

• Robotic Main Framing Station for Cabin Spot Welding will improve productivity and consistent quality.• Robotic Station for Cabin Door Hemming will save energy along with very high productivity and consistent

quality.• Plant layout re-engineering has reduced material movement and wastage.

(iii) In case of imported technology (imported during the last three years reckoned from the beginning of thefinancial year)- (a) the details of technology imported; (b) the year of import; (c) whether the technology beenfully absorbed; (d) if not fully absorbed, areas where absorption has not taken place, and the reasonsthereof: - Not Applicable

(iv) The expenditure incurred on Research and Development:(Rs. in lakhs)

(a) Capital 1,561.17(b) Recurring 1,816.87(c) Total 3,378.04(d) R&D expenditure as a %age of total incone 2.87%

Our in-house Research & Development facility has been duly recognized by Department of Scientific & Industrial Research(DSIR), Govt. of India since 1987.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO(Rs. in lakhs)

Earnings in foreign currency 2,253.20Payment in foreign currency 2,582.05

4848

BALANCE SHEET AS AT 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)

Note No. As at As at As at31 March 2018 31 March 2017 01 April 2016

ASSETSNon-current assetsProperty, plant and equipment 3 35,286.00 20,849.17 16,530.41Capital work-in-progress 3 2,705.05 7,817.01 4,028.58Other intangible assets 3 1,217.04 687.20 710.50Intangible assets under development 3 781.40 - -Financial assets– Loans 4A 326.25 238.32 189.07– Other financial assets 5A 156.50 90.92 -Income tax assets (net) 6 756.03 521.44 406.46Other non-current assets 7 1,811.00 3,325.02 1,653.44Total non-current assets 43,039.27 33,529.08 23,518.46Current assetsInventories 8 36,378.21 29,458.24 33,852.94Financial assets– Trade receivables 9 11,727.92 11,475.55 10,280.39– Cash and cash equivalents 10 1,995.50 538.44 766.80– Bank balances other than Cash and cash equivalents above 11 200.28 225.40 2,846.89– Loans 4B 105.67 69.56 69.46– Other financial assets 5B 100.40 61.08 232.40Other current assets 12 5,118.86 3,177.51 1,232.14Total current assets 55,626.84 45,005.78 49,281.02Total assets 98,666.11 78,534.86 72,799.48EQUITY AND LIABILITIESEquityEquity share capital 13 1,447.88 1,447.88 1,447.88Other equity 14 38,357.69 38,931.69 33,998.40Total equity 39,805.57 40,379.57 35,446.28Liabil i t iesNon-current l iabili t iesFinancial liabilities– Borrowings 15A 11,848.93 3,500.77 49.38– Other financial liabilities 16A 1,156.75 1,188.62 1,166.06Provisions 17A 4,562.53 4,674.89 4,343.57Deferred tax liabilities (net) 18 277.59 524.57 582.02Other non-current liabilities 19 245.05 197.85 55.69Total non-current l iabili t ies 18,090.85 10,086.70 6,196.72Current liabil it iesFinancial liabilities– Borrowings 15B 7,000.00 511.29 5,500.00– Trade payables 20 21,182.30 19,071.14 17,192.57– Other financial liabilities 16B 6,928.69 2,729.19 2,024.00Provisions 17B 1,674.39 1,604.97 1,487.47Current tax liabilities (net) 21 335.96 337.62 453.99Other current liabilities 22 3,648.35 3,814.38 4,498.45Total current liabil it ies 40,769.69 28,068.59 31,156.48Total liabili t ies 58,860.54 38,155.29 37,353.20Total equity and l iabili ties 98,666.11 78,534.86 72,799.48Significant accounting policies 2Notes to the Ind AS Financial Statements 1-45The accompanying notes form an integral part of the Ind AS financial statements

As per our report of even date attached For and on behalf of the Board of Directors of SML ISUZU Limited

For B S R & Associates LLP GOPAL BANSAL S.K. TUTEJAChartered Accountants Whole Time Director & CFO ChairmanFirm Registration Number : 116231W/W-100024

RAJESH ARORA PARVESH MADAN EIICHI SETOPartner Company Secretary Managing Director & CEOMembership Number : 076124

Place : New Delhi Place : New DelhiDate : 23 May, 2018 Date : 23 May, 2018

49

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)

Note No. Year ended Year ended31 March 2018 31 March 2017

INCOME :Revenue from operations 23 117,413.99 151,618.97Other income 24 311.47 415.03

Total income 117,725.46 152,034.00 Expenses:Cost of materials consumed 25 85,148.64 91,941.38Purchase of stock-in-trade 5,326.78 4,761.31Changes in inventories of finished goods, 26 (6,435.90) 3,399.31work in progress and stock-in-tradeExcise duty on sales 23 3,909.20 16,001.72Employee benefits expense 27 14,612.08 14,024.92Finance costs 28 1,052.39 617.78Depreciation and amortisation expense 29 2,839.68 2,382.19Other expenses 30 10,326.79 10,490.84

Total expenses 116,779.66 143,619.45

Profit before tax 945.80 8,414.55Tax expense: 40Current tax 242.19 2,184.62Tax adjustment related to prior years 84.62 -Deferred tax credit (230.71) (71.06)

Income tax expense 96.10 2,113.56

Profit for the year 849.70 6,300.99

Other comprehensive income 14A. (i) Items that will not be reclassified to profit or loss

– Re-measurement gains on defined benefit plans 87.43 81.62(ii) Income tax related to items that will not be reclassified (30.55) (28.25)

to profit or loss

Net other comprehensive income not 56.88 53.37to be reclassified to profit or loss

B. (i) Items that will be reclassif ied to profit or loss– Effective portion of (losses) on hedging instruments (133.98) (42.29)

in cash flow hedges reclassified to profit or loss(ii) Income tax related to items that will be reclassified to 46.82 14.64

profit or loss

Net other comprehensive (loss) to be reclassified (87.16) (27.65)to profit or loss

Total comprehensive income for the year 819.42 6,326.71

Basic and diluted earnings per share in Rupees 34 5.87 43.54(Face value of Rs.10 per share)Significant accounting policies 2Notes to the Ind AS financial statements 1-45

The accompanying notes form an integral part of the Ind AS financial statements



RAJESH ARORA PARVESH MADAN EIICHI SETOPartner Company Secretary Managing Director & CEOMembership Number : 076124

Place : New Delhi Place : New DelhiDate : 23 May, 2018 Date : 23 May, 2018

5050

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)

Year ended Year ended31 March 2018 31 March 2017

A. CASH FLOW FROM OPERATING ACTIVITIESProfit before tax 945.80 8,414.55Adjustments For :Depreciation and amortization expense 2,839.68 2,382.19Unrealised loss / (gain) on foreign exchange fluctuation 8.36 (11.33)Finance costs 1,052.39 617.78Interest income (158.84) (366.23)Property, plant and equipment / Capital work-in-progress written off 61.18 19.55Net gain on sale of property, plant and equipment (10.23) (0.69)Provision for liquidated damages 29.66 88.83Allowance for doubtful trade receivables / advances 82.57 87.30Trade receivables / advances written off 47.19 49.07Liabilities no longer required written back (211.23) (124.56)Operating profit before working capital changes 4,686.53 11,156.46Adjustments for :(Increase) in other non current and current financial assets (166.26) (26.25)(Increase) in other non current and current assets (2,006.87) (1,852.95)(Increase) / Decrease in inventories (6,919.97) 4,394.70(Increase) in trade receivables (363.23) (1,458.98)(Decrease) / Increase in other non current and current financial liabilities (150.13) 124.34Increase in current and non current provisions 44.47 530.46Increase in trade payables 2,224.47 2,152.51(Decrease) in other non current and current liabilities (64.76) (542.19)CASH (USED) / PROVIDED BY OPERATIONS (2,715.75) 14,478.10Less: Direct tax paid (net of refunds) 563.06 2,415.96NET CASH (USED) / PROVIDED BY OPERATING ACTIVITIES (3,278.81) 12,062.14

B. CASH FLOW FROM INVESTING ACTIVITIES

Payment for property, plant and equipment, intangible assets, (9,968.87) (11,984.08)capital work-in-progress and intangible assets under developmentProceeds from sale of property, plant and equipment 10.23 1.01Investment in Bank deposits (having original maturity of more than three months) (85.52) (43,684.75)Maturity of Bank deposits (having original maturity of more than three months) 62.50 46,237.28Realisation of Margin money 1.39 0.72Interest income 154.26 513.50

NET CASH (USED) BY INVESTING ACTIVITIES (9,826.01) (8,916.32)

51

C. CASH FLOW FROM FINANCING ACTIVITIESLong-term borrowings taken during the year (excluding finance lease) 10,500.00 3,500.00(Repayment) / Proceeds from finance lease (47.97) 102.37Short-term borrowings taken / (repaid) during the year (net) 6,488.71 (4,988.71)Dividend paid (1,145.86) (1,136.01)Tax paid on dividends (235.69) (235.69)Addition to unpaid dividend accounts (11.87) (21.72)Finance costs paid (985.44) (594.42)

NET CASH PROVIDED / (USED) BY FINANCING ACTIVITIES 14,561.88 (3,374.18)

Net increase / (decrease) in cash and cash equivalents 1,457.06 (228.36)Cash and cash equivalents at the beginning of the year 538.44 766.80Cash and cash equivalents at the end of the year 1,995.50 538.44Notes to Cash flow statement :-

1. Components of cash and cash equivalentsCash in hand 1.85 5.62

Balances with banks– Bank deposits (Original maturity with 3 months or less) 1,135.00 -– Current accounts 858.65 532.82

1,995.50 538.44

2. The above "Cash flow statement" has been prepared under the Indirect method as set out in Indian AccountingStandard-7, “Statement of Cash Flows”.

3. Reconciliation of movements of liabilities to cash flows arising from financing activities :-Borrowings at the beginning of the year (Current and non current) * 4,083.18 5,616.94

Proceeds from borrowings 10,452.03 3,602.37 Proceeds / (Repayment) of borrowings ** 6,488.71 (4,988.71) Exchange (gain) / loss on term loan 163.92 (147.42) Borrowings at the end of the year (Current and non-current) * 21,187.84 4,083.18 * includes short-term borrowings ** includes net movement during the year for short-term borrowings



RAJESH ARORA PARVESH MADAN EIICHI SETOPartner Company Secretary Managing Director & CEOMembership Number : 076124Place : New Delhi Place : New DelhiDate : 23 May, 2018 Date : 23 May, 2018


5252

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)

A. Equity share capital Note

Balance as at 1 April 2016 1,447.88

Changes in equity share capital during 2016-17 -

Balance as at 31 March 2017 1,447.88

Changes in equity share capital during 2017-18 -

Balance as at 31 March 2018 13 1,447.88

B. Other equity

Particulars Reserves and surplus Other comprehensive income

Securities General Retained Cash flow Remeasure- Total otherpremium reserve earnings hedge reserve ment of equity

reserve (Refer Note 14) (Refer Note 14) (Refer Note 14) defined benefit(Refer Note 14) liability

(Refer Note 14)Balance as at 1 April 2016 7,452.88 9,293.71 17,251.81 - - 33,998.40Profit for the year - - 6,300.99 - - 6,300.99Other comprehensive income (net of tax) - - - (27.65) 53.37 25.72

Total comprehensive income for the year - - 6,300.99 (27.65) 53.37 6,326.71Transfer to general reserve - 628.09 (628.09) - - -Dividend (including corporate dividend tax) - - (1,393.42) - - (1,393.42)

Balance as at 31 March 2017 7,452.88 9,921.80 21,531.29 (27.65) 53.37 38,931.69Balance as at 1 April 2017 7,452.88 9,921.80 21,531.29 (27.65) 53.37 38,931.69Profit for the year - - 849.70 - - 849.70Other comprehensive income (net of tax) - - - (87.16) 56.88 (30.28)

Total comprehensive income for the year - - 849.70 (87.16) 56.88 819.42Transfer from retained earnings - 84.97 (84.97) - - -Dividend (including corporate dividend tax) - - (1,393.42) - - (1,393.42)

Balance as at 31 March 2018 7,452.88 10,006.77 20,902.60 (114.81) 110.25 38,357.69Significant accounting policies 2Notes to the Ind AS financial statements 1-45The accompanying notes form an integral part of the Ind AS financial statements



RAJESH ARORA PARVESH MADAN EIICHI SETOPartner Company Secretary Managing Director & CEOMembership Number : 076124Place : New Delhi Place : New DelhiDate : 23 May, 2018 Date : 23 May, 2018

53

NOTES FORMING PART OF THE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)

1. Reporting entity

SML Isuzu Limited (the 'Company') is a public Company domiciled in India with its registered office situated at Village:Asron, Distt. Shahid Bhagat Singh Nagar (Nawanshahr), Punjab and its shares are listed on the National Stock Exchange(NSE) and the Bombay Stock Exchange (BSE) in India. The Company is primarily engaged in the business of manufactureand sale of Commercial Vehicles and their parts. The Company has its operations primarily in India.

The financial statements of the Company for the year ended 31 March 2018 have been prepared as per the requirementsof Schedule III of the Companies Act, 2013.

2. Significant Accounting Policies

(a) Basis of preparation

(i) Statement of compliance

These Ind AS financial statements ("financial statements") have been prepared in accordance with IndianAccounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 and theCompanies (India Accounting Standards) Amendment Rules, 2016 notified under section 133 of CompaniesAct, 2013, (the 'Act') and other relevant provisions of the Act.

The Company's financial statements upto and for the year ended 31 March 2017 were prepared in accordancewith the Companies (Accounting Standards) Rules, 2006, notified under section 133 of Companies Act,2013, (the 'Act') and other relevant provisions of the Act.

As these are the Company's first financial statements prepared in accordance with Indian Accounting Standards(Ind AS), Ind AS 101, First time adoption of Indian Accounting Standards has been applied. The transitionwas carried out from Indian Accounting Principles generally accepted in India as prescribed under section133 of the Act, read with rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previousGAAP. An explanation of how the transition to Ind AS has affected the previously reported financial position,financial performance and cash flow of the Company is provided in Note 31.

The financial statements were authorized for issue by the Company's Board of Directors on 23 May 2018.

(ii) Functional and presentation currency

The functional currency of the Company is the Indian Rupee. These financial statements are presented inIndian Rupees. All amounts have been rounded-off to the nearest lakhs, up to two places of decimal, unlessotherwise indicated.

(iii) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items:

Items Measurement basis

Net defined benefits (assets)/liability Fair Value of the plan assets less present value of defined benefitsobligations

Certain financial assets and liabilities Fair value(Including derivative instruments)

5454

(iv) Use of estimates and judgments

The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP")requires management to make judgements, estimates and assumptions that affect the application of accountingpolicies and the reported amounts of assets, liabilities, income and expenses. Actual results could differfrom those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimatesare recognized prospectively in current and future periods.

JudgmentsInformation about judgments made in applying accounting policies that have the most significant effects onthe amounts recognised in the financial statements is included in the following notes:

– Note 3 and 2 (b) - Assessment of useful life and residual value of Property, plant and equipment

– Note 3 and 2 (c) - Assessment of useful life of Intangible assets

– Note 17 A, 17 B, 32 and 2 (f) (g) - Provisions and contingent liabilities

– Note 40 and 2 (L) - Income taxes

– Note 15 (A), 16 (B) and 2 (m) Lease classification including determining whether an arrangement containsa lease

– Note 8, 2 (d) - Inventory valuation

Assumptions and estimation uncertaintiesInformation about assumptions and estimation uncertainties that have a significant impact on the financialstatements are as mentioned below:

Note 17 (A), 17(B) and 38 - measurement of defined benefit obligations: key actuarial assumptions

Note 17 (A), 17 (B) and 32 - recognition and measurement of provisions and contingencies: key assumptionsabout the likelihood and magnitude of an outflow of resources.

Note 2 (o) (ii) - Impairment test of non-financial assets: key assumptions underlying recoverable amounts

Note 2 (o) (i)- Impairment of financial assets

Note 39 (B) and 2 (a) (v)- Fair value measurement of financial instruments

Note 18 and 2 (L) -Recognition of deferred tax assets: Availability of future taxable profits against which suchdeferred tax assets can be adjusted

(v) Measurement of fair valuesA number of the Company's accounting policies and disclosures require measurement of fair values, for bothfinancial and non-financial assets and liabilities. The Company has an established control framework withrespect to measurement of fair values.

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in thevaluation techniques as follows.

– Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities.

– Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability,either directly (i.e. as prices) or indirectly (i.e. derived from prices)

– Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)


55

When measuring the fair value of an asset or liability, the Company uses observable market data as far aspossible. If the inputs used to measure the fair value of an asset or liability fall into different levels of the fairvalue hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fairvalue hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reportingperiod during which the changes have occurred.

Further information about the assumptions made in measuring fair values is included in the following note:

Note 39 (B) - financial instruments

(b) Property, plant and equipment ('PPE')

(i) Recognition and measurement

Property, plant and equipment are measured at cost, which includes capitalised borrowing costs, lessaccumulated depreciation and/ or accumulated impairment losses, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties andnon-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable costsof bringing the item to its working condition for its intended use and estimated costs of dismantling andremoving the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials anddirect labor, any other costs directly attributable to bringing the item to working condition for its intended use,and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they areaccounted for as separate items (major components) of property, plant and equipment.

Capital work-in-progress comprises the cost of PPE that are not ready for their intended use at the reportingdate.

Advances paid towards acquisition of PPE outstanding at each Balance sheet date, are shown under othernon-current assets.

(ii) Transition to Ind AS

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property,plant and equipment recognised as at 1 April 2016, measured as per the previous GAAP, and use thatcarrying value as the deemed cost of such property, plant and equipment (refer Note 31)

(iii) Subsequent expenditure

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated withthe expenditure will flow to the Company.

(iv) Depreciation

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residualvalues over their estimated useful lives using the straight-line method, and is recognised in the statement ofprofit and loss. Assets acquired under finance leases are depreciated over the shorter of the lease term andtheir useful lives unless it is reasonably certain that the Company will obtain ownership by the end of thelease term. Freehold land is not depreciated.


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Depreciation on item of PPE is calculated on the basis useful lives as specified below:

Particulars Management estimate Useful li fe as perof useful life (Years) Schedule II of the

Companies Act, 2013 (Years)

Buildings

– Buildings (other than Road) 3-60 3-60

– Roads 10 10

Office equipment 3-10 5

Furniture and fixtures 3-10 10

Vehicles 4-10 8

Plant and equipment 2-35 15-35

Computers 3-6 3-6

Depreciation method, useful lives and residual values are reviewed at each financial year-end and adjusted ifappropriate. Based on technical evaluation and consequent advice, the management believes that its estimatesof useful lives as given above best represent the period over which management expects to use theseassets.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which assetis ready for use (disposed of).

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefitsare expected to arise from the continued use of the asset. Any gain or loss arising on the disposal orretirement of an item of property, plant and equipment is determined as the difference between the salesproceeds and the carrying amount of the asset and is recognised in profit or loss.

(c) Other intangible assets

(i) Intangible assets acquired separately:

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulatedamortisation and accumulated impairment losses. Amortisation is recognised on a straight-line basis overtheir estimated useful lives. The estimated useful life and amortisation method are reviewed at the end ofeach reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulatedimpairment losses.

(ii) Internally generated: Research and development

Expenditure on research activities is recognised in profit or loss as incurred.

Development expenditure is capitalised as part of the cost of the resulting intangible asset only if the expenditurecan be measured reliably, the product or process is technically and commercially feasible, future economicbenefits are probable, and the Company intends to and has sufficient resources to complete developmentand to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initialrecognition, the asset is measured at cost less accumulated amortisation and/ or any accumulated impairmentlosses.


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(iii) Subsequent expenditureSubsequent expenditure is capitalised only when it increases the future economic benefits embodied in thespecific asset to which it relates. All other expenditure is recognised in statement of profit or loss as incurred.

(iv) Transition to Ind ASOn transition to Ind AS, the Company has elected to continue with the carrying value of all of its intangibleassets recognised as at 1 April 2016, measured as per the previous GAAP, and use that carrying value asthe deemed cost of such intangible assets. (Refer note 31)

(v) AmortisationAmortisation is calculated to write off the cost of intangible assets less their estimated residual values overtheir estimated useful lives using the straight-line method, and is included in depreciation and amortisation inStatement of Profit and Loss.

The estimated useful lives are as follows:

– Software 3-10 years

– Technical know-how 2.5-10 years

Amortisation method, useful lives and residual values are reviewed at the end of each financial year andadjusted if appropriate.

(vi) DerecognitionIntangible assets are derecognised on disposal or when no future economic benefits are expected from theiruse and disposal.

(d) Inventories

Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on themoving weighted average method, and includes expenditure incurred in acquiring the inventories, production orconversion costs and other costs incurred in bringing them to their present location and condition. In the case ofmanufactured inventories and work-in-progress, cost includes an appropriate share of fixed production overheadsbased on normal operating capacity.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs ofcompletion and the estimated costs necessary to make the sale.

The net realisable value of work-in-progress is determined with reference to the selling prices of related finishedproducts.

Raw materials, components and other supplies held for use in the production of finished products are not writtendown below cost except in cases where material prices have declined and it is estimated that the cost of thefinished products will exceed their net realisable value. The comparison of cost and net realisable value is made onan item-by-item basis.

(e) Employee benefits

Short-term employee benefitsShort-term employee benefit obligations are measured on an undiscounted basis and are expensed as the relatedservice is provided. A liability is recognised for the amount expected to be paid e.g., salaries and wages, shortterm compensated absences and bonus etc., if the Company has a present legal or constructive obligation to paythis amount as a result of past service provided by the employee, and the amount of obligation can be estimatedreliably.


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Post-employment benefits

Defined contribution plans

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributionsand will have no legal or constructive obligation to pay further amounts. The Company makes specifiedcontributions towards these schemes such as Superannuation Fund, Provident Fund, Employee State Insuranceand other funds as determined under relevant schemes and/ or statue. Obligations for contributions to definedcontribution plans are recognised as an employee benefit expense in profit or loss in the periods during whichthe related services are rendered by employees.

Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. Gratuity is adefined benefit plan. The liability or asset recognised in the balance sheet in respect of gratuity plan is thepresent value of the defined benefits obligation at the end of the reporting period less the fair value of planassets. The defined benefit obligation is calculated annually by actuaries using the projected unit creditmethod.

Remeasurements of the net defined benefit liability i.e Gratuity, which comprise actuarial gains and losses,the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest),are recognised in other comprehensive income ('OCI'). The Company determines the net interest expense(income) on the net defined benefit liability (asset) for the period by applying the discount rate used tomeasure the defined benefit obligation at the beginning of the annual period to the then-net defined benefitliability (asset), taking into account any changes in the net defined benefit liability (asset) during the period asa result of contributions and benefit payments. Net interest expense and other expenses related to definedbenefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefits thatrelates to past service ('past service cost' or 'past service gain') or the gain or loss on curtailment is recognisedimmediately in profit or loss. The Company recognises gains and losses on the settlement of a definedbenefit plan when the settlement occurs.

Other long term employee benefits

Compensated absences

The Company's net obligations in respect of long-term employee benefits other than post-employment benefitsis the amount of future benefits that employees have earned in return for their service in the current and priorperiods; that benefit is discounted to determine its present value, and the fair value of any related assets isdeducted. Obligations such as those related to compensated absences are measured on the basis of anannual independent actuarial valuation using the projected unit cost credit method. Remeasurement gains orlosses are recognised in profit or loss in the period in which they arise.

Termination benefits

Termination benefits are recognised as an expense when, as a result of past event, the Company has apresent obligation that can be estimated reliably, and it is probable that an outflow of economic benefits willbe required to settle the obligation.

(f) Provisions (other than for employee benefits)

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligationthat can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle theobligation. Provisions are recognised at the best estimate of the expenditure required to settle the present obligation


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at the balance sheet date. Provisions are determined by discounting the expected future cash flows at a pre-taxrate that reflects current market assessments of the time value of money and the risks specific to the liability. Theunwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

(i) Warranties

A provision for warranties is recognised when the underlying products or services are sold. The provision isbased on technical evaluation, historical warranty data and a weighing of all possible outcomes by theirassociated probabilities. The timing of outflows will vary as and when warranty claim will arise.

(ii) Onerous contracts

A contract is considered to be onerous when the expected economic benefits to be derived by the Companyfrom the contract are lower than the unavoidable cost of meeting its obligations under the contract. Theprovision for an onerous contract is measured at the present value of the lower of the expected cost ofterminating the contract and the expected net cost of continuing with the contract.

(g) Contingent liabilities

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may,but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimatedreliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow ofresources is remote.

Contingent assets usually arise from unplanned or other unexpected events that give rise to the possibility of aninflow of economic benefits to the entity. Contingent assets are recognized when the realisation of income isvirtually certain, then the related asset is not a contingent asset and its recognition is appropriate.

A contingent asset is disclosed where an inflow of economic benefits is probable.

(h) Commitments

Commitments include the amount of purchase order / contracts (net of advances) issued to parties for completionof assets. Provisions, contingent liabilities, contingent assets and commitments are reviewed at each reportingdate.

(i) Revenue

Sale of products

Revenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer,recovery of the consideration is probable, the associated costs and possible return of goods can be estimatedreliably, there is no continuing effective control over goods sold, or managerial involvement to the degree associatedwith ownership of goods, and the amount of revenue and its related cost can be measured reliably. Revenue fromsale of goods in the course of ordinary activities is measured at the fair value of the consideration received orreceivable, net of returns, trade discounts, incentives and liquidated damages. This inter alia involves discountingof the consideration due to the present value if payment extends beyond normal credit terms. Revenues includeexcise duty till 30 June 2017 (goods and service tax (GST) applicable w.e.f. 1 July 2017) and are shown net ofGST, sales tax, value added tax and applicable discounts and allowances, if any.

The timing of transfers of risks and rewards varies depending on the individual terms of sale as follows:

– For sales of vehicles to dealers, usually such transfer occurs when the vehicles are received by the dealer,however, for some international shipments transfer occurs from the date of bill of lading

– For government sales, transfer occurs when the confirmation for receipt of vehicles is given by customer


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Rendering of services

Consideration received for services not yet rendered and for which Company has an obligation to perform isrecognised as revenue received in advance and subsequently recognised as revenue in the statement of profit andloss over the period of the contract.

Other operating revenue

Export benefits are accounted for on accrual basis.

Revenue from royalty is recognized on accrual basis as per the terms of agreement entered into with the respectiveparties.

Revenue from dealer support services is recognized on accrual basis as per the terms of agreement entered intowith the Dealers.

Other income

Government grants

Government grants are not recognised until there is reasonable assurance that the Company will comply with theconditions attached to them and that the grants will be received. Government grants are recognised in profit or losson a systematic basis over the periods in which the Company recognises as expenses the related costs for whichthe grants are intended to compensate. Specifically, government grants whose primary condition is that the Companyshould purchase, construct or otherwise acquire non-current assets are recognised as deferred revenue in thebalance sheet and transferred to profit or loss on a systematic and rational basis over the useful lives of the relatedassets.

(j) Recognition of interest income or expense

Interest income or expense is recognised using the effective interest method.

The 'effective interest rate' is the rate that exactly discounts the estimated future cash payments or receiptsthrough the expected life of the financial instrument to:

– The gross carrying amount of the financial asset; or

– The amortised cost of the financial liability.

In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount ofthe asset (when the asset is not credit-impaired) or to the amortised cost of the liability. However, for financialassets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applyingthe effective interest rate to the amortised cost of the financial asset. If the asset is no longer credit-impaired, thenthe calculation of interest income reverts to the gross basis.

(k) Borrowing costs

Borrowing costs includes interest and other costs (including exchange differences arising from foreign currencyborrowings to the extent they are regarded as an adjustment to the interest cost) incurred in connection with theborrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarilytake a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset.Other borrowing costs are recognised as an expense in the period in which they are incurred.


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(l) Income-tax

Income tax comprises current and deferred tax. It is recognised in statement of profit or loss except to the extentthat it relates to an item recognised directly in equity or in other comprehensive income.

Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and anyadjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects thebest estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related toincome taxes. It is measured using tax rates (and tax laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off therecognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of the assets andliabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred taxasset is recognised for the carry forward of unused tax losses and unused tax credits to the extent that it isprobable that future taxable profit will be available against which the unused tax losses and unused tax credits canbe utilised. Therefore, the Company recognises a deferred tax asset only to the extent that it has sufficient taxabletemporary differences or there is convincing other evidence that sufficient taxable profit will be available againstwhich such deferred tax asset can be realized.

Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised /reduced to the extent that it is probable / no longer probable respectively that the related tax benefits will berealized.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realized or theliability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which theCompany expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and deferred tax liabilities are offset only if there is a legally enforceable right to offset currenttax liabilities and assets, and they relate to income taxes levied by the same tax authorities.

Minimum Alternative Tax ('MAT') under the provisions of the Income-tax Act, 1961 is recognised as current tax inthe Statement of Profit and Loss. The credit available under the Act in respect of MAT paid is recognised as anasset only when and to the extent there is convincing evidence that the Company will pay normal income taxduring the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MATcredit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaidconvincing evidence no longer exists.

(m) Leases

(i) Determining whether arrangement contains a lease

At inception of an arrangement, it is determined whether the arrangement is or contains a lease.

At inception or on reassessment of the arrangement that contains a lease, the payments and other considerationrequired by such an arrangement are separated into those for the lease and those for other elements on thebasis of their relative fair values. If it is concluded for a finance lease that it is impracticable to separatepayments reliably, then an asset and a liability are recognised at an amount equal to the fair value of theunderlying asset. The liability is reduced as payments are made and an imputed finance cost on the liabilityis recognised using the incremental borrowing rate.


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(ii) Assets held under lease

Leases of property, plant and equipment that transfer to the Company substantially all the risks and rewardsof ownership are classified as finance leases. The leased assets are measured initially at an amount equal tothe lower of their fair value and the present value of minimum lease payments. Subsequent to initial recognition,the assets are accounted for in accordance with the accounting policy applicable to similar owned assets.

Assets held under leases that do not transfer to the company substantially all the risk and rewards ofownership (i.e. operating leases) are not recognised in the Company's balance sheet.

(iii) Lease Payments

Payments made under operating leases are recognised in profit or loss on a straight line basis over the termof the lease unless the payments are structured to increase in line with expected general inflation tocompensate for the lessor's expected inflationary cost increases.

Minimum lease payments made under finance leases are apportioned between the finance charge and thereduction of the outstanding liability. The finance charge is allocated to each period during the lease term soas to produce a constant periodic rate of interest on the remaining balance of the liability.

(n) Financial Instruments

(i) Recognition and initial measurement

Trade receivables are initially recognised when they are originated. All other financial assets and financialliabilities are initially recognised when the Company becomes a party to the contractual provisions of theinstrument.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair valuethrough profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

(ii) Classification and subsequent measurement

Financial assets

On initial recognition, a financial asset is classified as measured at:

a. Amortised cost;

b. Fair value through other comprehensive income ('FVOCI') - debt investment;

c. Fair value through other comprehensive income ('FVOCI') - equity investment; or

d. Fair value through profit and loss ('FVTPL')

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period theCompany changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is notdesignated as at FVTPL:

– the asset is held within a business model whose objective is to hold assets to collect contractual cashflows; and

– the contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.


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A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated asat FVTPL:

– the asset is held within a business model whose objective is achieved by both collecting contractualcash flows and selling financial assets; and

– the contractual terms of the financial asset give rise on specified dates to cash flows that are solelypayments of principal and interest on the principal amount outstanding.

On the initial recognition of an equity investment that is not held for trading, the Company may irrevocablyelect to present subsequent changes in the investment's fair value in OCI (designated as FVOCI - equityinvestment). This election is made on an investment-by- investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measuredat FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocablydesignate a financial asset that otherwise meets the requirements to be measured at amortised cost or atFVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that wouldotherwise arise.

Financial assets: Subsequent measurement and gains and losses

Financial These assets are subsequently measured at fair value. Net gains and losses, includingassets at any interest or dividend income, are recognised in statement of profit and loss.FVTPL

Financial These assets are subsequently measured at amortised cost using the effective interestassets at method. The amortised cost is reduced by impairment losses. Interest income, foreignamortised exchange gains and losses and impairment are recognised in profit or loss. Any gain orcost loss on de-recognition is recognised in statement of profit and loss.

Debt These assets are subsequently measured at fair value. Interest income under the effectiveinvestments interest method, foreign exchange gains and losses and impairment are recognisedat FVOCI in profit or loss. Other net gains and losses are recognised in OCI. On de- recognition,

gains and losses accumulated in OCI are reclassified to statement of profit and loss.

Equity These assets are subsequently measured at fair value. Dividends are recognised asinvestments income in profit or loss unless the dividend clearly represents a recovery of part of theat FVOCI cost of the investment. Other net gains and losses are recognised in OCI and are not

reclassified to statement of profit and loss.

Financial liabilities: Classification, subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classifiedas at FVTPL, if it is classified as held for trading, or it is a derivative or it is designated as such on initialrecognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including anyinterest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured atamortised cost using the effective interest method. Interest expense and foreign exchange gains and lossesare recognised in profit or loss. Any gain or loss on de-recognition is also recognised in profit or loss.


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(iii) De-recognition

Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financialasset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantiallyall of the risks and rewards of ownership of the financial asset are transferred or in which the Company neithertransfers nor retains substantially all of the risks and rewards of ownership and does not retain control of thefinancial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, butretains either all or substantially all of the risks and rewards of the transferred assets, the transferred assetsare not derecognised.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled,or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under themodified terms are substantially different. In this case, a new financial liability based on the modified termsis recognised at fair value. The difference between the carrying amount of the financial liability extinguishedand the new financial liability with modified terms is recognised in profit or loss.

(iv) Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when,and only when, the Company currently has a legally enforceable right to set off the amounts and it intendseither to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(v) Derivative financial instruments

The Company holds derivative financial instruments to hedge its exposure to interest rate and foreign exchangerate risks by entering into cross currency interest rate swaps. Embedded derivatives are separated from thehost contract and accounted for separately if the host contract is not a financial asset and certain criteria aremet.

Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured atfair value and changes therein are generally recognised in profit or loss.

(vi) Hedge accounting:

The Company designates certain derivatives as hedging instruments to hedge the variability in cash flowsassociated with highly probable forecast transactions arising from changes in foreign exchange rates andinterest rates.

At inception of designated hedging relationships, the Company documents the risk management objectiveand strategy for undertaking the hedge. The Company also documents the economic relationship betweenthe hedged item and the hedging instrument, including whether the changes in cash flows of the hedged itemand hedging instrument are expected to offset each other.

Cash flow hedges:

When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in thefair value of the derivative is recognised in OCI and accumulated in the other equity under 'effective portionof cash flow hedges'. The effective portion of changes in the fair value of the derivative that is recognised in


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OCI is limited to the cumulative change in fair value of the hedged item, determined on a present value basis,from inception of the hedge. Any ineffective portion of changes in the fair value of the derivative is recognisedimmediately in profit or loss.

Amounts previously recognised in other comprehensive income and accumulated in equity relating to (effectiveportion as described above) are reclassified to profit or loss in the periods when the hedged item affects profitor loss, in the same line as the recognised hedged item.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised,or when it no longer qualifies for hedge accounting.

(o) Impairment

(i) Impairment of financial assets

The Company recognises loss allowances for expected credit loss on financial assets measured at amortisedcost. At each reporting date, the Company assesses whether financial assets carried at amortised cost iscredit-impaired. A financial asset is 'credit-impaired' when one or more events that have detrimental impacton the estimated future cash flows of the financial assets have occurred.

The Company measures loss allowances at an amount equal to lifetime expected credit losses, except forthe following, which are measured as 12 month expected credit losses:

– Bank balances for which credit risk (i.e. the risk of default occurring over the expected life of thefinancial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected creditlosses. Lifetime expected credit losses are the expected credit losses that result from all possible defaultevents over the expected life of a financial instrument. The Company follows 'simplified approach' for recognitionof impairment loss allowance for trade receivables. The application of simplified approach does not requirethe Company to track changes in credit risk. Rather, it recognises impairment loss allowance based onlifetime expected credit loss at each reporting date, right from its initial recognition.

12-month expected credit losses are the portion of expected credit losses that result from default events thatare possible within 12 months after the reporting date (or a shorter period if the expected life of the instrumentis less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximumcontractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognitionand when estimating expected credit losses, the Company considers reasonable and supportable informationthat is relevant and available without undue cost or effort. This includes both quantitative and qualitativeinformation and analysis, based on the Company's historical experience and informed credit assessment andincluding forward looking information.

Measurement of expected credit losses

Expected credit losses are a probability- weighted estimate of credit losses. Credit losses are measured asthe present value of all cash shortfalls (i.e. difference between the cash flow due to the Company in accordancewith the contract and the cash flow that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet

Loss allowance for financial assets measured at amortised cost is deducted from the gross carrying amountof the assets.


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Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that thereis no realistic prospect of recovery. This is generally the case when the Company determines that thedebtors do not have assets or sources of income that could generate sufficient cash flows to repay theamount subject to the write-off. However, financial assets that are written off could still be subject toenforcement activities in order to comply with the Company's procedure for recovery of amounts due.

(ii) Impairment of non-financial assets

The Company's non-financial assets, other than inventories and deferred tax assets, are reviewed at eachreporting date to determine whether there is any indication of impairment. If any such indication exists, thenthe asset's recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cash-generating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows thatare largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair valueless costs to sell. Value in use is based on the estimated future cash flows, discounted to their present valueusing a pre-tax discount rate that reflects current market assessments of the time value of money and therisks specific to the CGU (or the asset).

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverableamount. Impairment losses are recognised in the statement of profit and loss. Impairment loss recognised inrespect of a CGU is allocated to reduce the carrying amounts of the assets of the CGU (or group of CGUs) ona pro rata basis.

An impairment loss in respect of assets for which impairment loss has been recognised in prior periods, theCompany reviews at each reporting date whether there is any indication that the loss has decreased or nolonger exists. An impairment loss is reversed if there has been a change in the estimates used to determinethe recoverable amount. Such a reversal is made only to the extent that the asset's carrying amount does notexceed the carrying amount that would have been determined, net of depreciation or amortisation, if noimpairment loss had been recognised.

(p) Foreign currency transactions

Initial recognition

Transactions in foreign currencies are translated into the functional currency of the Company at the exchangerates at the dates of the transactions or an average rate if the average rate approximates the actual rate at the dateof the transaction.

Measurement at the reporting date

Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at theexchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreigncurrency are translated into the functional currency at the exchange rate when the fair value was determined. Non-monetary assets and liabilities that are measured based on historical cost in a foreign currency are translated atthe exchange rate at the date of the transaction. Exchange differences on restatement/settlement of all monetaryitems are recognised in profit or loss. Exchange differences related to qualifying cash flow hedges are recognisedin other comprehensive income to the extent that hedges are effective.


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(q) Operating segments

An operating segment is a component of the Company that engages in business activities from which it may earnrevenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company'sother components, and for which discrete financial information is available. All operating segments' operatingresults are reviewed regularly by the Company's Chief Operating Decision Maker (CODM) to make decisions aboutresources to be allocated to the segments and assess their performance.

(r) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash in hand,demand deposits held with banks, other short-term highly liquid investments with original maturities of threemonths or less that are readily convertible to known amounts of cash and which are subject to an insignificant riskof changes in value.

(s) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) for the period is adjusted for the effectsof transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or paymentsand item of income or expenses associated with investing or financing cash flows. The cash flows from operating,investing and financing activities of the Company are segregated based on the available information.

(t) Earnings per share

Basic earnings per share are calculated by dividing the net profit/ (loss) for the year attributable to equity shareholdersby the weighted average number of equity shares outstanding during the year. Diluted earnings per share iscomputed using the weighted average number of equity and dilutive equity equivalent shares outstanding duringthe year end, except where the results would be anti-dilutive.

(u) Research and development

Expenditure on research is expensed off under the respective heads of account in the period in which it is incurred.

Expenditure on development activities, whereby research findings are applied to a plan or design for the productionof new or substantially improved products and processes, is capitalised, if the cost can be reliably measured, theproduct or process is technically and commercially feasible and the Company has sufficient resources to completethe development and right to use the asset. The expenditure capitalised includes the cost of materials, direct laborand an appropriate proportion of overheads that are directly attributable to preparing the asset for its intended use.Other development expenditure is recognised in the Statement of Profit and Loss as an expense as incurred.

Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses.Property, plant and equipment used for research and development are depreciated in accordance with the Company'spolicy as stated above.

Materials identified for use in research and development process are carried as inventories and charged to theStatement of Profit and Loss on consumption of such materials for research and development activities.

(v) Recent accounting pronouncement

Ind AS 115, Revenue from contracts with customers

Ind AS 115 establishes a single comprehensive model for entities to use in accounting for revenue arising fromcontracts with customers. Ind AS 115 will supersede the current revenue recognition standard Ind AS 18 Revenue,Ind AS 11 Construction Contracts when it becomes effective.


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The core principle of Ind AS 115 is that an entity should recognise revenue to depict the transfer of promised goodsor services to customers in an amount that reflects the consideration to which the entity expects to be entitled inexchange for those goods or services. Specifically, the standard introduces a 5-step approach to revenue recognition:

• Step 1: Identify the contract(s) with a customer

• Step 2: Identify the performance obligation in contract

• Step 3: Determine the transaction price

• Step 4: Allocate the transaction price to the performance obligations in the contract

• Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation

Under Ind AS 115, an entity recognises revenue when (or as) a performance obligation is satisfied, i.e. when'control' of the goods or services underlying the particular performance obligation is transferred to the customer.

The Company has completed its evaluation of the possible impact of Ind AS 115 and does not expect the impactof the adoption of the new standard to be material.

Appendix B, Ind AS 21 - The effect of changes in Foreign Exchange rates

The amendment clarifies on the accounting of transactions that include the receipt or payment of advanceconsideration in a foreign currency. The appendix explains that the date of the transaction, for the purpose ofdetermining the exchange rate, is the date of initial recognition of the non-monetary prepayment asset or deferredincome liability. If there are multiple payments or receipts in advance, a date of transaction is established for eachpayment or receipt. The impact of the same is not expected to be material on the Company's financial statements.


69


NOTE 3Property, plant and equipment (PPE) and capital work in progress **

Freehold Buildings Plant and Plant and Furniture Office Vehicles Computers Total CapitalLand equipment equipment and equipment work in

on lease @ fixtures Progress^

GROSS BLOCKBalance as at 1 April 2016 48.74 7,135.46 7,633.20 130.80 330.85 175.95 682.50 392.91 16,530.41 4,028.58(Deemed cost) #Additions during the year * - 696.30 4,993.09 169.94 340.17 72.86 200.48 76.82 6,549.66 9,477.82

Disposals / Adjustments - - 4.00 - - 0.54 - - 4.54 5,689.39Balance as at 31 March 2017 48.74 7,831.76 12,622.29 300.74 671.02 248.27 882.98 469.73 23,075.53 7,817.01Additions during the year * 235.18 3,649.15 12,561.88 23.15 291.73 48.72 38.79 259.54 17,108.14 11,334.25Disposals / Adjustments - 13.65 67.99 - 0.34 0.24 29.60 0.14 111.96 16,446.21Balance as at 31 March 2018 283.92 11,467.26 25,116.18 323.89 962.41 296.75 892.17 729.13 40,071.71 2,705.05ACCUMULATED DEPRECIATIONBalance as at 1 April 2016 - - - - - - - - - -Charge during the year - 369.19 1,302.07 29.59 68.42 64.45 212.40 181.54 2,227.66 -

Disposals / Adjustments - - 1.08 - - 0.22 - - 1.30 -Balance as at 31 March 2017 - 369.19 1,300.99 29.59 68.42 64.23 212.40 181.54 2,226.36 -Charge during the year - 470.08 1,504.42 51.11 129.34 66.57 199.49 189.13 2,610.14 -Disposals / Adjustments - 3.98 30.07 - 0.15 0.23 16.36 - 50.79 -Balance as at 31 March 2018 - 835.29 2,775.34 80.70 197.61 130.57 395.53 370.67 4,785.71 -NET BLOCKBalance as at 1 April 2016 48.74 7,135.46 7,633.20 130.80 330.85 175.95 682.50 392.91 16,530.41 4,028.58Balance as at 31 March 2017 48.74 7,462.57 11,321.30 271.15 602.60 184.04 670.58 288.19 20,849.17 7,817.01

Balance as at 31 March 2018 283.92 10,631.97 22,340.84 243.19 764.80 166.18 496.64 358.46 35,286.00 2,705.05Other intangible assets

Software Technical Total Intangibleknow-how assets under

development ^GROSS BLOCK - AcquiredBalance as at 1 April 2016 (Deemed cost) # - 710.50 710.50 -

Additions during the year 104.97 26.26 131.23 131.23Disposals / Adjustments - - - 131.23

Balance as at 31 March 2017 104.97 736.76 841.73 -Additions during the year 519.37 240.01 759.38 1,540.78Disposals / Adjustments - - - 759.38Balance as at 31 March 2018 624.34 976.77 1,601.11 781.40

7070

ACCUMULATED AMORTISATIONBalance as at 1 April 2016 - - - -Charge during the year 15.42 139.11 154.53 -Disposals / Adjustments - - - -Balance as at 31 March 2017 15.42 139.11 154.53 -Charge during the year 64.55 164.99 229.54 -Disposals / Adjustments - - - -Balance as at 31 March 2018 79.97 304.10 384.07 -NET BLOCKBalance as at 1 April 2016 - 710.50 710.50 -Balance as at 31 March 2017 89.55 597.65 687.20 -Balance as at 31 March 2018 544.37 672.67 1,217.04 781.40Notes:

* Additions include Rs. 650.43 lakhs (previous year Rs.150.31 lakhs) towards assets located at the research and developmentfacilities.

** refer note 15 for information on PPE pledged as security by the Company.# refer note 31 for reconciliation of deemed cost as adopted by Company in accordance with Ind AS 101.@ The related finance lease obligations in respect to plant and equipment acquired under finance lease arrangements have

been disclosed in note nos. 15 A & 16.^ Disposals / adjustments included in Capital work in progress / Intangible assets under development represents assets

capitalised during the year.Additions during the year in PPE and other intangible assets includes borrowing costs capitalised amounting toRs. 403.97 lakhs (previous year Rs. 10.62 lakhs).Refer note 32 for disclosure of contractual commitments for the acquisition of PPE.The gross and net carrying amount of plant and equipment acquired under finance leases are separately shown in thereconciliation of carrying amount in note no. 3 above.

NOTE 4As at As at As at

31 March 2018 31 March 2017 01 April 2016

LOANS*(Unsecured, considered good unless stated otherwise)

A. Non-CurrentLoans to employees 173.16 81.32 32.59Security deposits 153.09 157.00 156.48

326.25 238.32 189.07

B. CurrentLoans and advances to employees 93.70 65.58 61.96Security deposits 11.97 3.98 7.50

105.67 69.56 69.46

431.92 307.88 258.53

* The Company's exposure to credit and market risks related to financial assets are disclosed in note 39.


71



OTHER FINANCIAL ASSETS*A. Non-Current

Other bank balances:– Bank deposits (due to mature after twelve months from 148.58 89.96 -

the reporting date) **Interest accrued but not due on bank deposits 7.92 0.96 -

156.50 90.92 -B. Current

Interest accrued but not due on deposits 8.62 11.00 159.24Royalty income receivable 8.90 9.88 9.65Export incentive receivable 10.85 40.20 63.51Insurance claim receivable 72.03 - -

100.40 61.08 232.40

256.90 152.00 232.40

** Deposits includes restricted bank deposits amounting to Rs. 148.58 lakhs (31 March 2017 Rs. 89.96 lakhs, 1 April 2016Nil) on account of deposits held as margin money against bank guarantees.

* The Company's exposure to credit and market risks related to financial assets are disclosed in note 39.



INCOME TAX ASSETS (NET)Advance income-tax and tax deducted at source (net of provision) 756.03 521.44 406.46

756.03 521.44 406.46NOTE 7

As at As at As at31 March 2018 31 March 2017 01 April 2016

OTHER NON-CURRENT ASSETS(Unsecured considered good unless stated otherwise)Capital advances 760.10 2,326.30 463.12Prepaid expenses and other advances

Considered good 17.29 14.62 3.78Considered doubtful 50.00 50.00 50.00Less: Allowance for doubtful advances 50.00 50.00 50.00

17.29 14.62 3.78Amount paid under protest to government authorities– Income tax 970.97 945.97 945.97– Sales tax

Considered good 62.64 38.13 238.44Considered doubtful 87.30 87.30 -Less: Allowance for doubtful advances 87.30 87.30 -

62.64 38.13 238.44– Excise duty - - 2.13

1,811.00 3,325.02 1,653.44


7272



INVENTORIES(valued at cost or net realisable value, whichever is lower)

Raw materials * 9,554.75 7,974.06 7,003.71

Work in progress 4,479.95 13,519.06 3,702.92

Finished goods (Vehicles) * 21,399.05 6,845.03 21,987.28

Stock-in-trade (Spare parts) * 800.63 1,021.29 1,045.72

Stores and spares * 125.20 73.52 91.05

Loose tools * 18.63 25.28 22.26

36,378.21 29,458.24 33,852.94

*Includes goods / stock in transit:

– Raw materials 657.95 564.87 500.57

– Finished goods (Vehicles) 2,370.87 1,063.80 2,644.37

– Stock-in-trade (Spare parts) 7.45 25.83 46.84

– Stores and spares 0.55 0.70 3.33

– Loose tools 6.52 1.50 1.77

Note:

The net reversal of write downs during the year amounted to Rs. 192.85 lakhs (previous year Rs. 225.95 lakhs)



TRADE RECEIVABLES *

Secured, considered good 505.16 507.64 263.86

Unsecured

– Considered good 11,222.76 10,967.91 10,016.53

– Considered doubtful 359.69 277.12 304.93

12,087.61 11,752.67 10,585.32

Less: Allowance for bad and doubtful receivables 359.69 277.12 304.93

11,727.92 11,475.55 10,280.39

* The Company's exposure to credit and market risks related to financial assets are disclosed in note 39.* The carrying amount of trade receivables approximate their fair values is included in note 39.


73



CASH AND CASH EQUIVALENTS *

Balances with banks

– in deposit accounts (Original maturity of 3 months or less) 1,135.00 - -– in current accounts 858.65 532.82 757.93Cash on hand 1.85 5.62 8.87

1,995.50 538.44 766.80

*The Company's exposure to credit and market risks related to financial assets are disclosed in note 39.



BANK BALANCES OTHER THAN CASH AND CASH EQUIVALENTS ABOVE *

Bank deposits (with original maturity of more than three months 11.60 48.04 2,691.60but less than twelve months) **Unpaid dividend accounts 169.94 158.07 136.35Margin money (against bank guarantees) 1.00 2.39 3.11Earmarked balances # 17.74 16.90 15.83

200.28 225.40 2,846.89

* The Company's exposure to credit and market risks related to financial assets are disclosed in note 39.** includes restricted bank deposits amounting to Rs. 11.60 lakhs (31 March 2017 Rs. 48.04 lakhs, 1 April 2016

Rs. 191.60 lakhs) on account of deposits held as margin money against bank guarantees.# These balances are earmarked to meet certain employee related contingencies and are restricted and not freely usable.



OTHER CURRENT ASSETS(Unsecured considered good unless stated otherwise)

Balance with government authorities 3,188.66 2,702.08 840.56Advances for supply of goods 1,649.07 189.34 154.32Prepaid expenses and other advances 280.99 285.95 237.26Others 0.14 0.14 -

5,118.86 3,177.51 1,232.14


7474


NOTE 13As at 31 March 2018 As at 31 March 2017 As at 1 April 2016

EQUITY SHARE CAPITALNo. of Amount No. of Amount No. of Amount

I. Detail of Share Capital shares shares shares

AuthorisedEquity shares of Rs. 10 each 40,000,000 4,000.00 40,000,000 4,000.00 40,000,000 4,000.00

40,000,000 4,000.00 40,000,000 4,000.00 40,000,000 4,000.00

Issued, subscribed and paid up

Equity shares of Rs. 10 each fully paid up* 14,471,646 1,447.17 14,471,646 1,447.17 14,471,646 1,447.17

Forfeited equity shares of Rs.10 each 13,300 0.71 13,300 0.71 13,300 0.71

14,484,946 1,447.88 14,484,946 1,447.88 14,484,946 1,447.88

* Includes 100 (31 March 2017 ; 100, 1 April 2016 ; 100) equity shares of Rs. 10 each, fully paid up, held by a non-residentIndian ('NRI') for which approval from the Reserve Bank of India is pending.

2. Rights, preferences and restrictions attached to the equity shares :-

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends andshare in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. Thevoting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capitalof the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable havenot been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares. On winding up of theCompany, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distributionof all preferential amounts in proportion to the number of equity shares held.

3. Reconciliation of the shares outstanding at beginning and at the end of the year

As at 31 March 2018 As at 31 March 2017 As at 1 April 2016

Particulars No. of Amount No. of Amount No. of Amountshares shares shares

Balance at the beginning and at 14,471,646 1,447.17 14,471,646 1,447.17 14,471,646 1,447.17the end of the year

4. Details of shareholders holding more than 5% share in the Company

As at 31 March 2018 As at 31 March 2017 As at 1 April 2016

No. of % of equity No. of % of equity No. of % of equityshares shares held shares shares held shares shares held

Sumitomo Corporation, Japan 6,362,306 43.96% 6,362,306 43.96% 6,362,306 43.96%

Isuzu Motors Limited 2,170,747 15.00% 2,170,747 15.00% 2,170,747 15.00%

5. There are no shares reserved for issue under options and contracts/commitments. Further, there are no shares that havebeen allotted during last 5 years pursuant to a contract without payment being received in cash, or by way of bonusshares or shares bought back.

75

NOTE 14As at As at

31 March 2018 31 March 2017

OTHER EQUITYi. Securities premium reserve *

Balance at the beginning of the year 7,452.88 7,452.88

Add: Movement during the year - -

Balance at the end of the year 7,452.88 7,452.88

* Securities premium reserve represents premium received on equity shares issued, which can be utilised only in accor-dance with the provisions of the Companies Act, 2013 (the Act) for specified purposes.

i i . General reserve *Balance at the beginning of the year 9,921.80 9,293.71

Add : Amount transferred from surplus 84.97 628.09


* The general reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. Asthe general reserve is created by a transfer from one component of equity to another and is not an item of other compre-hensive income, items included in the general reserve will not be reclassified subsequently to profit or loss.

i ii . Retained earnings *Balance at the beginning of the year 21,531.29 17,251.81

Add: Profit for the year 849.70 6,300.99

Less: Dividend (including corporate dividend tax) 1,393.42 1,393.42

Less: Transfer to General Reserve 84.97 628.09


* Retained earnings represent the profits that the Company has earned till date less any transfer to general reserve,less any dividends, or other distributions paid to shareholders.

iv. Other comprehensive income(a) Remeasurement of defined benefit plan (net of tax)*

Balance at the beginning of the year 53.37 -

Remeasurement of defined benefit plan (net of tax) 56.88 53.37

Balance at the end of the year 110.25 53.37

* Remeasurements of defined benefit obligation comprises actuarial gains and losses and return on plan assets(excluding interest income).

(b) Cash flow hedge reserve (net of tax) *Balance at the beginning of the year (27.65) -

Net movement of cash flow hedge (net of tax) (87.16) (27.65)

Balance at the end of the year (114.81) (27.65)

* Cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fairvalue of hedging instruments entered into for cash flow hedges. The cumulative gain or loss arising on changes infair value of the hedging instruments that are recognised and accumulated in this reserve are reclassified to profit orloss only when the hedged transaction affects the profit or loss.


7676


V. Summary of components of Other Equity

Securities premium account 7,452.88 7,452.88 7,452.88

General reserve 10,006.77 9,921.80 9,293.71

Retained earnings 20,902.60 21,531.29 17,251.81

Other comprehensive income

(a) Remeasurement of defined benefit plan 110.25 53.37 -

(b) Cash flow hedge reserve (114.81) (27.65) -

38,357.69 38,931.69 33,998.40

NOTE 15


BORROWINGS *

A. Non-current @Term Loan - Unsecured **

– From bank 14,016.50 3,352.58 -

Less: Current maturities of term loan (refer note 16 B) (2,250.00) - -

Long-term maturities of finance lease obligations (Unsecured) # 171.34 219.31 116.94

Less: Current maturities of finance lease obligations (refer note 16 B) (88.91) (71.12) (67.56)

11,848.93 3,500.77 49.38

# Refer to note 33(c) for future minimum lease payments in respect of finance lease obligations.

* The Company's exposure to liquidity and market risks related to financial liabilities are disclosed in note 39.

** Represents term loan in the form of external commercial borrowing ("ECB"), denominated in USD, taken from Bank ofTokyo Mitsubishi UFJ Ltd., Japan. The loan carries floating rate of interest of USD 1M LIBOR + 70 bps and is repayablein 18 quarterly instalments, commencing from 02 July, 2018 and ending on 03 October, 2022. Accordingly, the Companyhas an outstanding of Rs. 14,016.50 lakhs (USD 215.06 lakhs) as at 31 March 2018 [31 March 2017 Rs. 3,352.58 lakhs(USD 51.70 lakhs), 1 April 2016 Nil].

B. Current

Loans repayble on demand

Cash credit from banks- secured (i) - 511.29 -

Other loans from banks - unsecured (ii) 7,000.00 - 5,500.00

7,000.00 511.29 5,500.00


77

(i) The cash credit limits sanctioned by the bankers are secured by a first charge by way of hypothecation of the Company’scurrent assets i.e. stocks of raw materials, semi-finished goods, finished goods, stores and spares, bills receivablesincluding receivables from hire-purchase/ leasing, book debts and other movables of the Company (both present andfuture) and also by way of a collateral pari passu second charge on the Company’s Property, plant and equipment. Thesecarry an interest rate ranging from 10.00% to 11.00% per annum. The Company has not defaulted on repayment of loanand interest during the year.

(ii) Other loans from banks – unsecured represents working capital demand loan taken from Mizuho Bank Limited. Thesecarry an interest rate ranging from 7.00% to 8.00% per annum. The Company has not defaulted on repayment of loan andinterest during the year.

NOTE 16


OTHER FINANCIAL LIABILITIES *

A. Non-Current

Security deposit from dealers 1,156.75 1,185.25 1,010.50

Capital creditors - 3.37 155.56

1,156.75 1,188.62 1,166.06

B. Current

Capital creditors 3,199.67 1,194.40 677.17

Unpaid dividends 169.94 158.07 136.35

Interest accrued but not due on borrowings 90.30 23.36 -

Current maturities of term loan [refer to note 15(A)] 2,250.00 - -

Current maturities of finance lease obligation [refer note 15(A)] 88.91 71.12 67.56

Employee payables 970.10 1,092.52 859.67

Book overdraft - - 283.25

Cross currency interest rate swaps used for hedging # 159.77 189.72 -

6,928.69 2,729.19 2,024.00

# This represents fair value of the derivative contracts undertaken to hedge against the foreign exchange exposure arising fromrepayment of loans and payment of interest. The Company has designated these derivatives as hedge relationships. Anychange in the fair value of the derivative contract is recognised in the other comprehensive income.

* The Company's exposure to liquidity and market risks related to financial liabilities are disclosed in note 39.


7878

NOTE 17


PROVISIONSA. Non Current

Provisions for employee benefits (refer to note 38)Gratuity 1,836.31 1,984.11 2,051.00Compensated absences 2,432.67 2,261.93 1,818.11

4,268.98 4,246.04 3,869.11Other provisionsProvisions for warranties * 293.55 428.85 474.46

293.55 428.85 474.464,562.53 4,674.89 4,343.57

B. CurrentProvisions for employee benefits (refer to note 38)

Gratuity 392.19 354.02 304.54Compensated absences 801.09 720.80 725.74Superannuation 36.66 41.59 36.11

1,229.94 1,116.41 1,066.39Other provisionsProvisions for warranties * 444.45 488.56 421.08

444.45 488.56 421.081,674.39 1,604.97 1,487.47

* Movement of Warranty Provision

Particulars AmountBalance as on 1 April 2016 895.54Accrued during the year # 473.55Amount utilized during the year 489.63Unwinding of discount 37.95Balance as on 31 March 2017 917.41Accrued during the year # 366.81Amount utilized during the year 580.54Unwinding of discount 34.32Balance as on 31 March 2018 738.00

# net of write back of liability in respect of provision for warranty Rs. 44.15 lakhs (2016-17 Rs. 113.14 lakhs, 2015-16Rs. 230.93 lakhs)* The Company is liable towards warranty claims made by end users of its products. The year end provision is based on itsestimate of the past experience regarding failure trends of products and costs of rectification or replacement. It is estimatedthat the provision would be fully utilized over the warranty period i.e. within 3 years.


79

NOTE 18


DEFERRED TAX LIABILITIES (NET) *

Deferred tax liabilities 3,644.36 2,597.47 2,441.60Deferred tax assets (3,366.77) (2,072.90) (1,859.58)

277.59 524.57 582.02

* Refer note 40 for details of deferred tax liabilities and assets



OTHER NON-CURRENT LIABILITIES

Revenue received in advance 245.05 197.85 55.69

245.05 197.85 55.69



TRADE PAYABLES */**

Dues of Micro Enterprises and Small Enterprises [refer note below] 28.28 4.88 -Other trade payables 21,154.02 19,066.26 17,192.57

21,182.30 19,071.14 17,192.57

*The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August, 2008 whichrecommends that the Micro and Small Enterprises should mention in their correspondences with its customers the EntrepreneursMemorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of amounts payableto such enterprises as at the year end has been made in the financial statements based on information available with theCompany as under :


8080

Particulars As at As at As at31 March 2018 31 March 2017 1 April 2016

(a) The amounts remaining unpaid to micro, small and mediumenterprises as at the end of the year

– Principal 28.28 4.88 –

– Interest – – –

(b) The amount of interest paid by the buyer as per the Micro, – – –Small and Medium Enterprises Development Act, 2006

(c) The amounts of the payments made to micro and small suppliers, – – –beyond the appointed day during each accounting year

(d) The amount of interest due and payable for the period (where the – – –principal has been paid but interest under the Micro, Small andMedium Enterprises Development Act, 2006 not paid)

(e) The amount of interest accrued and remaining unpaid at the end of – – –each accounting year

(f) The amount of further interest due and payable even in the succeeding – – –years, until such date when the interest dues as above are actuallypaid to the small enterprise, for the purpose of disallowance as adeductible expenditure under the Micro, Small and Medium EnterprisesDevelopment Act, 2006

The total dues of Micro and Small Enterprises which were outstanding for more than stipulated period are Rs. Nil (31 March2017 Rs. Nil, 1 April 2016 Rs. Nil) as on balance sheet date.

** The Company's exposure to liquidity and market risks related to financial liabilities are disclosed in note 39.



CURRENT TAX LIABILITIES (NET)

Provisions for income tax (net of advance tax) 335.96 337.62 453.99

335.96 337.62 453.99



OTHER CURRENT LIABILITIESAdvance from customers 1,669.76 963.67 1,605.73Revenue received in advance 411.29 471.14 905.83Statutory dues 1,567.30 2,379.57 1,986.89

3,648.35 3,814.38 4,498.45


81


NOTE 23Year ended Year ended

31 March 2018 31 March 2017

REVENUE FROM OPERATIONS *Sale of products

Finished goods - vehicles 108,033.94 141,411.11Traded goods - spare parts 7,954.54 8,870.70

115,988.48 150,281.81

Other operating revenuesSale of scrap 437.93 399.41Rendering of Services 555.41 504.41Export incentives 44.59 55.24Dealer support services 51.39 82.58Royalty 124.96 134.15Exchange gain on foreign exchange fluctuations (net) – 36.81Liabilities no longer required written back 211.23 124.56

1,425.51 1,337.16

117,413.99 151,618.97

* Revenue from operations, computed in accordance with Ind AS 18 'Revenue', for the current period is not comparable withprevious period since the same is net of Goods and Service Tax (GST) whereas excise duty forms part of expenses in previousyear. The comparative revenue from operations of the company is given below:-


Revenue from operations 117,413.99 151,618.97

Less: Excise duty on sales 3,909.20 16,001.72

Revenue from operations (net of excise duty ) 113,504.79 135,617.25


31 March 2018 31 March 2017

OTHER INCOMEInterest income on

Bank deposits 11.97 206.56Others 146.87 159.67

Net gain on sale of property, plant and equipment 10.23 0.69Insurance claim 72.03 –Miscellaneous 70.37 48.11

311.47 415.03

8282


31 March 2018 31 March 2017

COST OF MATERIALS CONSUMED

Inventory of material at the beginning of the year 7,974.06 7,003.71

Add: Purchase of materials 86,729.33 92,911.73

94,703.39 99,915.44

Inventory of material at the end of the year 9,554.75 7,974.06

85,148.64 91,941.38


31 March 2018 31 March 2017

CHANGES IN INVENTORY OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK IN TRADE

Opening stock

– Finished goods (Vehicles) 6,845.03 21,987.28

– Stock-in-trade (Spare parts) 1,021.29 1,045.72

– Work-in-progress 13,519.06 3,702.92

21,385.38 26,735.92

Less : Closing stock

– Finished goods (Vehicles) 21,399.05 6,845.03

– Stock-in-trade (Spare parts) 800.63 1,021.29

– Work-in-progress 4,479.95 13,519.06

26,679.63 21,385.38

Add : Movement in excise duty content in finished goods and stock-in-trade (1,141.65) (1,951.23)

(6,435.90) 3,399.31NOTE 27


EMPLOYEE BENEFITS EXPENSES

Salaries, wages, bonus and compensated absences 12,166.84 11,718.88

Contributions to provident and other funds (refer note 38) 1,275.71 1,210.31

Staff welfare expenses 1,169.53 1,095.73

14,612.08 14,024.92


83


31 March 2018 31 March 2017

FINANCE COSTS

Interest expense on

Borrowings measured at amortised cost 576.54 223.79

Others 125.44 113.59

Net interest on net defined benefit liability 155.58 169.56

Finance cost on finance lease obligations measured at amortised cost 23.81 10.24

Unwinding of discount on warranty provisions 34.31 37.96

Other borrowing costs * 136.71 62.64

1,052.39 617.78

* includes Rs. 62 lakhs paid to Industrial Finance Corporation of India “IFCI” to obtain a 'no dues certificate' basis which allerstwhile charges on the Company’s movable and immovable properties have now been vacated.


31 March 2018 31 March 2017

DEPRECIATION AND AMORTISATION EXPENSEDepreciation of property, plant and equipment 2,610.14 2,227.66

Amortisation of intangible assets 229.54 154.53

2,839.68 2,382.19


8484


31 March 2018 31 March 2017

OTHER EXPENSESConsumption of stores and spares and loose tools 208.34 235.28Repairs :– Plant and Machinery 221.00 185.67– Buildings 225.37 213.13– Others 215.11 126.13Power and fuel 1,156.99 1,138.53Rent (refer note 33) 406.27 391.07Rates and taxes 142.14 285.13Legal and professional 153.85 196.88Auditor's remuneration:

Statutory audit 43.00 36.00Tax audit 5.00 4.00Limited review of quarterly results 14.40 12.00Other services 17.34 9.25Reimbursement of expenses 5.12 4.74

Insurance 155.50 136.72Printing, stationery and other communication expense 151.66 170.11Travelling and conveyance 820.98 846.27Allowance for doubtful trade receivables / advances 82.57 87.30Packing and freight outward 3,477.68 3,815.65Warranty costs 366.81 473.55Marketing, sales promotion and service expense 968.49 876.40Royalty expense – 6.29Testing and other laboratory expense 629.70 480.90Foreign exchange loss on foreign currency (net) 22.71 –Property, plant and equipment / Capital work-in-progress written off (net) 61.18 19.55Trade receivables / advances written off 47.19 49.07Contribution towards Corporate social responsibility 151.37 102.97Miscellaneous 577.02 588.25

10326.79 10,490.84

Detail of corporate social responsibility expenditurea. Amount required to be spent by the Company during the year 150.50 102.45

b. Amount spent during the year (in cash)

(i) Construction / acquisition of any asset – –

(ii) On purpose other than (i) above 151.37 102.97

151.37 102.97


85

31 Explanation of transition to Ind AS

As stated in note 2 (a) (i), these are the Company's first financial statements prepared in accordance with Ind AS. For theyear ended 31 March 2017, the Company had prepared its financial statements in accordance with Companies (AccountingStandards) Rules, 2006 notified under section 133 of the Act and other relevant provisions of the Act ('previous GAAP').

The accounting policies set out in note 2 have been applied in preparing these financial statements for the year ended31 March 2018 including the comparative information for the year ended 31 March 2017 and the opening Ind AS balancesheet on the date of transition i.e. 1 April 2016.

In preparing its Ind AS balance sheet as at 1 April 2016 and in presenting the comparative information for the year ended31 March 2017, the Company has adjusted amounts reported previously in financial statements prepared in accordancewith previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statementsprepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected theCompany's financial position, financial performance and cash flows.

A. Optional exemptions availed

(i) Property, plant and equipment and intangible assets

As permitted by Ind AS 101 "First time adoption", the Company has elected to continue with its carrying valuesunder previous GAAP for all items of property, plant and equipment. The same selection has been made in respectof intangible assets.

Information relating to Gross carrying amount of assets and accumulated depreciation as on the transition date asper previous GAAP is as follows:

Description As on 1 April 2016

Gross Block Accumulated Deemed costDepreciation

Property, Plant and Equipment (PPE) *

Freehold Land 48.74 - 48.74

Buildings 9,363.83 2,228.37 7,135.46

Plant and equipment 13,750.50 6,117.30 7,633.20

Furniture and fixtures 508.25 177.40 330.85

Office equipment 401.38 225.43 175.95

Vehicles 1,851.75 1,169.25 682.50

Computers 1,067.86 674.95 392.91

Total 26,992.31 10,592.70 16,399.61

Intangible assets

Technical know-how 1,297.06 586.56 710.50

Total 1,297.06 586.56 710.50

* Property, plant and equipment does not include Plant and equipment on lease amounting to Rs. 130.80 lakhswhich has been recognised as a transition adjustment as per Ind AS 17 "Leases".


8686


(ii) Determining whether an arrangement contains a lease

Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix Cof Ind AS 17 for determining whether an arrangement existing at the date of transition contains a lease by consideringthe facts and circumstances existing at the date of transition (rather than at the inception of the arrangement). TheCompany has elected to avail of the above exemption.

B. Mandatory exceptions

(i) Estimates

As per Ind AS 101, an entity's estimates in accordance with Ind AS at the date of transition or as at the end of thecomparative information period presented in the entity's first Ind AS financial statements, shall be consistent withestimates made for the same date in accordance with previous GAAP unless there is objective evidence that thoseestimates were in error. However, the estimates should be adjusted to reflect any difference in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not requiredunder previous GAAP, those estimates should be made to reflect conditions that exist at the transition date or at theend of the comparative period, as the case may be.

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered inpreparation of the financial statements that were not required under the previous GAAP are as follows:

– Determination of discounted value for financial instruments carried at amortised cost.

– Determination of fair value changes of cash flow hedges through other comprehensive income.

– Impairment of financial assets based on expected credit loss model."

(ii) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstancesexisting as on the date of transition. Accordingly, the Company has determined the classification of financial assetsbased on facts and circumstances that exist on the date of transition. Measurement of financial assets accountedat amortised cost has been done retrospectively.

(iii) De-recognition of financial assets and liabilities

"Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively fortransactions occurring on or after the date of transaction to Ind AS. However, Ind AS 101 allows a first time adopterto apply the de-recognition requirements in Ind AS 109 retrospectively from the date of the entity’s choosing,provided that the information needed to apply Ind AS 109 to financials assets and liabilities derecognised as a resultof past transaction was obtained at the time of initially accounting for those transactions. As permitted by Ind AS101, the Company has adopted to apply the de-recognition provisions of Ind AS 109 prospectively from the date oftransition to Ind AS.

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NOTES FORMING PART OF THE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)Reconciliation of equity

Note As at the date of transition 1 April 2016 As at 31 March 2017

Previous Ind AS Ind AS Previous Ind AS Ind ASGAAP* adjustment GAAP* adjustment

Non-current assets

Property, plant and equipment (a) 16,399.61 130.80 16,530.41 20,578.03 271.14 20,849.17

Capital work in progress 4,028.58 - 4,028.58 7,817.01 - 7,817.01

Other intangible assets 710.50 - 710.50 687.20 - 687.20

Financial assets

Loans 189.07 - 189.07 238.32 - 238.32

Other financial assets - - - 90.92 - 90.92

Income tax assets (net) 406.46 - 406.46 521.44 - 521.44

Other non-current assets 1,653.44 - 1,653.44 3,325.02 - 3,325.02

Total non-current assets 23,387.66 130.80 23,518.46 33,257.94 271.14 33,529.08

Current assets

Inventories 33,852.94 - 33,852.94 29,458.24 - 29,458.24

Financial assets

Trade receivables 10,280.39 - 10,280.39 11,475.55 - 11,475.55

Cash and cash equivalents 766.80 - 766.80 538.44 - 538.44

Bank balances other than cash 2,846.89 - 2,846.89 225.40 - 225.40and cash equivalents above

Loans 69.46 - 69.46 69.56 - 69.56

Other financial assets 232.40 - 232.40 61.08 - 61.08

Other current assets 1,232.14 - 1,232.14 3,177.51 - 3,177.51

Total current assets 49,281.02 - 49,281.02 45,005.78 - 45,005.78

Total assets 72,668.68 130.80 72,799.48 78,263.72 271.14 78,534.86

EQUITY AND LIABILITIES

Equity

Equity share capital 1,447.88 - 1,447.88 1,447.88 - 1,447.88

Other equity (k) 32,565.23 1,433.17 33,998.40 38,803.89 127.80 38,931.69

Total equity 34,013.11 1,433.17 35,446.28 40,251.77 127.80 40,379.57

8888


Note As at the date of transition 1 April 2016 As at 31 March 2017

Previous Ind AS Ind AS Previous Ind AS Ind ASGAAP* adjustment GAAP* adjustment

Non- current liabilities


Borrowings (a) - 49.38 49.38 3,352.58 148.19 3,500.77

Other financial liabilities 1,166.06 - 1,166.06 1,188.62 - 1,188.62

Provisions (b) 4,391.37 (47.80) 4,343.57 4,718.10 (43.21) 4,674.89

Deferred tax liability (net) (h) 560.11 21.91 582.02 557.33 (32.76) 524.57

Other non-current liabilities 55.69 - 55.69 197.85 - 197.85

Total non-current liabilities 6,173.23 23.49 6,196.72 10,014.48 72.22 10,086.70

Current liabilities


Borrowings 5,500.00 - 5,500.00 511.29 - 511.29

Trade payables 17,192.57 - 17,192.57 19,071.14 - 19,071.14

Other financial liabilities (a) 1,956.44 67.56 2,024.00 2,658.07 71.12 2,729.19

Provisions (j) 2,880.89 (1,393.42) 1,487.47 1,604.97 - 1,604.97

Current tax liabilities (net) 453.99 - 453.99 337.62 - 337.62

Other current liabilities 4,498.45 - 4,498.45 3,814.38 - 3,814.38

Total current liabilities 32,482.34 (1,325.86) 31,156.48 27,997.47 71.12 28,068.59

Total equity and liabilities 72,668.68 130.80 72,799.48 78,263.72 271.14 78,534.86

* Previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.

Reconciliation of total comprehensive income for the year ended 31 March 2017

Particulars Note Year ended 31 March 2017

Previous Ind AS Ind ASGAAP* adjustment

INCOME

Revenue from operations (c), (d), (e) 136,895.99 14,722.98 151,618.97

Other income 415.03 - 415.03

TOTAL REVENUE 137,311.02 14,722.98 152,034.00

89


EXPENSESCost of materials consumed (a) 92,019.17 (77.79) 91,941.38Purchase of stock-in-trade 4,761.31 - 4,761.31Changes in inventories of finished goods, 3,399.31 - 3,399.31stock-in-trade and work-in-progressExcise duty on sales (e) - 16,001.72 16,001.72Employee benefits expense (f), (g) 14,112.87 (87.95) 14,024.92Finance costs (a), (b), (g) 400.02 217.76 617.78Depreciation and amortization expense (a) 2,352.60 29.59 2,382.19Other expenses (b), (c), (d) 11,802.95 (1,312.11) 10,490.84

TOTAL EXPENSES 128,848.23 14,771.22 143,619.45Profit before tax and exceptional items 8,462.79 (48.24) 8,414.55

Profit before tax 8,462.79 (48.24) 8,414.55Tax expense:

– Current tax 2,184.62 - 2,184.62

– Deferred tax (h) (2.78) (68.28) (71.06)

Profit for the year 6,280.95 20.04 6,300.99Other comprehensive income

A. (i) Items that will not be re-classified to profit or loss– Re-measurement gains on defined (f) - 81.62 81.62

benefit plans

(ii) Income tax related to items that will not be (h) - (28.25) (28.25)reclassified to profit or loss

Net other comprehensive income not to be - 53.37 53.37reclassified to profit or loss

B. (i) Items that will be re-classified to profit or loss

– Effective portion of gain on hedging (i) - (42.29) (42.29)instruments in cash flow hedgesreclassified to profit or loss

(ii) Income tax related to items that will be (h) - 14.64 14.64reclassified to profit or loss

Net other comprehensive (loss) to be reclassified - (27.65) (27.65)subsequently to profit or loss

Total comprehensive income for the year 6,280.95 45.76 6,326.71

* Previous GAAP figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.

Particulars Note Year ended 31 March 2017

Previous Ind AS Ind ASGAAP* adjustment

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(a) Finance lease arrangements

Under Ind AS, any arrangement (even if not legally structured as lease) which conveys a right to use an asset in return fora payment or series of payments are identified as leases provided certain conditions are met. In case such arrangementsare determined to be in nature of leases, such arrangements are required to be classified into finance or operating leasesas per the requirement of Ind AS 17 "Leases".

As per Ind AS 17, "Leases", the Company has assessed certain long term arrangements, fulfillment of which is dependenton use of specified assets and where the Company has the right to control the use of such assets for being in the natureof lease. This resulted in certain arrangements being treated as a lease and classified as a finance lease.

The impact arising from the change is as follows:

Statement of Profit and Loss

Increase / (Decrease)Year ended

31 March 2017

Depreciation and amortisation expense 29.59

Finance costs 10.24

Cost of material consumed (77.79)

Adjustment before tax - (Profit) (37.96)

Balance Sheet

As at As at31 March 2017 01 April 2016

Property, plant and equipment (net block) 271.14 130.80

Borrowings

– Non current portion of finance lease obligation 148.19 49.38

– Current portion of finance lease obligation 71.12 67.56

Adjustment to retained earnings 51.83 13.86

(b) Non current provision of warranty expense

Under Indian GAAP, the Company has accounted for provisions, including long term provisions, at the undiscountedamount. In contrast, Ind AS 37 "Provisions, Contingent liabilities and Contingent assets" requires that where the effect oftime value of money is material, the amount of provision should be the present value of the expenditures required to settlethe obligations. Hence, provision for warranty has been valued at present value by discounting it at risk adjusted discountrate. Ind AS 37 also provides that where the discounting is used, the carrying amount of provision increases in eachperiod to reflect the passage of time. This increase is recognised as borrowing cost.

91


The impact arising from the change as follows:

Statement of Profit and Loss

Increase / (Decrease)Year ended

31 March 2017

Finance costs 37.95

Other expenses (warranty expense) (33.36)

Adjustment before tax - Loss 4.59

Balance sheet

As at As at31 March 2017 1 April 2016

Provisions (43.21) (47.80)

Adjustment to retained earnings 43.21 47.80

(c) Service charges

Under previous GAAP, service charge utilisation during the period was adjusted from service charge provision. However,under Ind AS, the same has been added to revenue from sale of goods and correspondingly service charge expense forthe year has also been increased by the same amount. This has resulted in an increase in the revenue from operationsand service charge expenses for the year ended 31 March 2017. Further, the amount of Rs. 185.12 lakhs recognisedduring the year in service charge expense has been reversed. The total comprehensive income for the year ended andequity as at 31 March 2017 has remain unchanged.

The impact arising from the change in the Statement of Profit and loss is as follows:

Year ended31 March 2017

Revenue from operations 504.41

Marketing, sales promotion and service expense 504.41

Adjustment before tax - (Profit) / Loss -

(d) Discounts , commissions and liquidated damages

Under previous GAAP discounts , commission paid and liquidated damages amounting to Rs. 1,598.03 lakhs wererecorded under other expenses. However, under Ind AS they are reclassified from other expenses and netted off fromrevenue. Hence the revenue has been reduced by Rs.1,598.03 lakhs and correspondingly other expenses has beendecreased. The total comprehensive income for the year ended and equity as at 31 March 2017 has remain unchanged.

(e) Excise duty

Under previous GAAP, revenue from sale of goods was presented net of excise duty on sales. Under Ind AS, revenuefrom sale of goods is presented inclusive of excise duty. Excise duty is presented as an expense in profit or loss. Thishas resulted in an increase in the revenue from operations and expenses for the year ended 31 March 2017. The total

9292


comprehensive income for the year ended and equity as at 31 March 2017 has remain unchanged.

The impact arising from the change in the Statement of Profit and loss is as follows:

Year ended31 March 2017

Revenue from operations 16,001.72

Excise duty 16,001.72

Adjustment before tax - (Profit) / Loss -

(f) Actuarial gains and losses

Under Ind AS, all actuarial gains and losses are recognised in other comprehensive income. Under previous GAAP, theCompany recognised actuarial gains and losses in profit or loss. Hence actuarial gain amounting to Rs. 81.62 lakhs(gross of tax impact of Rs. 28.25 lakhs) has been recognised in other comprehensive income instead of profit or loss.However, this has no impact on the total comprehensive income and total equity for the year ended 31 March 2017.

(g) Net interest on net defined liability

Under Ind AS, net interest on net defined benefit liability amounting to Rs.169.57 lakhs has been reclassified fromemployee benefit expense to finance cost. However, this has no impact on the total comprehensive income and totalequity for the year ended 31 March 2017.

(h) Deferred taxes

Under Ind AS, deferred taxes are recognised relating to Ind AS adjustments including deferred taxes measured usingbalance sheet approach. The effect of these are reflected in total equity and total comprehensive income.

The above changes (decreased)/ increased the deferred tax liability as follows :

Note As at As at31 March 2017 01 April 2016

(i) Derivatives (65.66) -

(ii) Lease arrangements (a) 17.94 4.92

(iii) Non current provision of warranty expense (b) 14.96 16.99

Adjustment to other equity (32.76) 21.91

Impact on Profit and loss and Other comprehensive income

2016-17

Opening Deferred tax liability (net) as per IND AS 582.02

Closing Deferred tax liability (net) as per IND AS 524.57

(Decrease) in deferred tax liability (57.45)

93


Impact already recognised as per previous GAAP (2.78)

Recognised in Profit and loss (68.28)

Recognised in Other comprehensive income for items 28.25that will not be reclassified to Profit or loss

Recognised in Other comprehensive income for items (14.64)that will be reclassified to Profit or loss

Net Impact recognised in Total Comprehensive income (57.45)

(i) Derivatives (cross currency interest rate swaps)

Under the previous GAAP, the Company had adopted the hedge accounting principles as provided in Guidance note onAccounting for Derivative Contracts issued by the Institute of Chartered Accountants of India, and accordingly, the neteffective portion of hedging instruments was recognised directly in the cash flow hedge reserve. Under Ind AS 109"Financial instruments", net effective portion of hedging instruments are accounted as a part of the other comprehensiveincome to the extent considered as effective and are aligned to the hedging strategy. Accordingly total comprehensiveincome has been increased and this has no impact on the total equity as at 31 March 2017.

(j) Proposed dividend

Under previous GAAP, dividends proposed by the board of directors after the reporting date but before the approval offinancial statements were considered to be adjusting event and accordingly recognised (along with related dividenddistribution tax) as liabilities at the reporting date. Under Ind AS, dividends so proposed by the board are considered to benon-adjusting event. Accordingly, provision for proposed dividend and dividend distribution tax recognised under previousGAAP has been reversed.

The impact arising from the change is summarised as follows:

Balance sheet

As at1 April 2016

Provisions - proposed dividend including dividend distribution tax (1,393.42)

Adjustment to retained earnings 1,393.42

(k) Other equity

The above changes (increased) / decreased total equity as follows:

Note As at As at31 March 2017 01 April 2016

Lease arrangements (a) (51.83) (13.86)

Non current provision of warranty expense (b) (43.21) (47.80)

Proposed dividend (j) - (1,393.42)

Tax effects (h) (32.76) 21.91

Increase in total equity (127.80) (1,433.17)

9494

NOTES FORMING PART OF THE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)(l) Under previous GAAP, Company had received the grant amounting to Rs. 15 lakhs from the Government for the set up of

manufacturing facility and same has been treated as capital reserve. But as per Ind AS grant can be of two types i.e.income related and asset related grant. If the grant is related to asset, then the grant will be set up as deferred income andcredited to statement of profit and loss on a systematic basis and rational basis over the useful life of asset. If the grantis related to income, then the grant is recognised in the statement of profit and loss over a period in which the companyrecognised the expenses for which the grant has been received. Accordingly, on the date of transition amount of Rs.15lakhs has been transferred from capital reserve to general reserve. This has no impact on total equity as at 1 April 2016and 31 March 2017.

Cash flow statement

The transition from previous GAAP to Ind AS has affected the cash flow for the year ended 31 March 2017 as follows:

Particulars Previous Ind AS Ind ASGAAP* adjustment

Cash flows from operating activities 11,800.17 261.97 12,062.14

Cash flows (used) in investing activities (8,746.38) (169.94) (8,916.32)

Cash flows (used) in financing activities (3,282.15) (92.03) (3,374.18)

Net increase / (decrease) in cash and cash equivalents (228.36) - (228.36)

32 Contingent liabilities and commitments(to the extent not provided for)Contingent liabilities


(a) Claims against the Company not acknowledged as debts:

Income tax matters 1,538.47 1,279.62 1,111.68

Sales tax matters 553.76 1,023.96 655.21

Excise and service tax matters 69.58 69.58 378.56

Civil matters 162.72 327.92 327.92

2,324.53 2,701.08 2,473.37

In respect of the matters above, the amount represents the demands received under the respective demand/ show causenotices/ legal claims, wherever applicable.

(b) In addition, the Company is subject to legal proceedings and claims, which have arisen in the ordinary course ofbusiness. The Company's management does not reasonably expect that these legal actions, when ultimatelyconcluded and determined, will have a material and adverse effect on the Company's results of operations orfinancial condition.

95


Capital and other commitments


(a) Capital Commitments (net of advances) not provided for

- in respect of tangible assets 1652.55 6,139.59 3,948.77

(b) Other commitments

– Non-cancellable lease commitments 17.08 265.87 74.12

33 Operating leases

Leases as lessee

The Company has taken certain premises under operating lease arrangements. The total lease rental recognized asexpense aggregate to Rs. 406.27 lakhs (previous year Rs. 391.07 lakhs).

(a) Amounts recognised in profit or loss:


Lease expense for the year 406.27 391.07

(b) Future minimum lease payments:Future minimum lease payments to be made under non-cancellable operating leases are as follows:


Payable in less than one year 27.64 81.84 34.16

Payable between one and five years 75.33 185.59 114.22

Payable after more than five years - - 17.96

102.97 267.43 166.34

(c) Finance lease obligations are payable as follows:

Particulars As at 31 March 2018 As at 31 March 2017 As at 1 April 2016

Future Interest Present Future Interest Present Future Interest Presentminimum element of value of minimum element of Value of minimum element Value of

lease MLP minimum lease MLP minimum lease of MLP minimumpayments lease payments lease payments lease

(MLP) payments (MLP) payments (MLP) payments

Not later than one year 102.62 13.71 88.91 94.93 23.81 71.12 77.80 10.24 67.56

Later than one year and 89.02 6.59 82.43 171.90 23.71 148.19 53.33 3.95 49.38not later than five years

Later than five years - - - - - - - - -

191.64 20.30 171.34 266.83 47.52 219.31 131.13 14.19 116.94

9696

NOTES FORMING PART OF THE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)The Company has assessed certain long term arrangements, fulfillment of which is dependent on use of specified assets andwhere the Company has the right to control the use of such assets for being in the nature of lease. This resulted in certainarrangements being treated as a lease and classified as a finance lease. Further, these obligations carries effective interestrate of 8% and having a maturity period starting from the year 2016 to 2022.

34 Earnings per share

As at As at31 March 2018 31 March 2017

Basic earnings per share (Rs.) 5.87 43.54

Diluted earnings per share (Rs.) 5.87 43.54

Face value per share (Rs.) 10.00 10.00

Note:

Profit for the year attributable to equity shareholders 849.70 6,300.99

Weighted average number of equity shares outstanding during the 14,471,646 14,471,646year [excluding 13,300 forfeited equity shares (previous year 13,300)] (in nos.)

35 Segment information

The Company is primarily engaged in the business of manufacturing of commercial vehicles and related componentswhich constitutes a single business segment, accordingly, disclosure requirement of Ind AS 108, “Operating Segments”are not required to be given. As defined in Ind AS 108, the Chief Operating Decision Maker (CODM) i.e. the Board ofdirectors evaluates the performance of the Company, allocate resources based on the analysis of the various performanceindicator of the Company as a single unit.

Geographical information

The "Geographical Segments" comprises of domestic segment which includes sales to customers located in India andthe overseas segment includes sales to customers located outside India.

Domestic Overseas Total

Revenue from operations

2017-18 113,848.91 3,565.08 117,413.99

2016-17 147,350.58 4,268.39 151,618.97

Non-current segment assets

As at 31 March 2018 40,749.59 - 40,749.59

As at 31 March 2017 31,679.68 - 31,679.68

As at 1 April 2016 21,732.61 - 21,732.61

Notes:a. Overseas segment includes sales and services rendered to customers located outside Indiab. Domestic segment includes sales and services rendered to customers located in Indiac. Non-current segment assets includes property, plant and equipment, capital work in progress, intangible assets,

intangible assets under development and capital advances.

Major customer

No customer individually accounted for more than 10% of the revenue.

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36 The Company has established a comprehensive system of maintenance of information and documents as required by thetransfer pricing regulation under sections 92-92F of the Income-Tax Act, 1961. Since the law requires existence of suchinformation and documentation to be contemporaneous in nature, the Company continuously updates its documentationfor the international transactions entered into with the associated enterprises during the financial year and expects suchrecords to be in existence latest by the due date as required under law. The management is of the opinion that itsinternational transactions are at arm’s length so that the aforesaid legislation will not have any impact on the financialstatements, particularly on the amount of income tax expense and that of provision for taxation.

37 Related parties

A. Related party and nature of related party relationship where control exists:

(i) Controlling Enterprise: Sumitomo Corporation, Japan

(ii) Key management personnel

Mr. Eiichi Seto - Managing Director & CEO

Mr. Gopal Bansal - Whole-time Director & CFO

Mr. Kei Katayama - Whole-time Director – R&D (upto 7 August 2017)

Mr. T Imai - Whole-time Director – R&D (w.e.f. 26 May 2017)

Mr. Parvesh Madan - Company Secretary

Mr. S.K. Tuteja - Non Executive and Independent Director

Mr. P.K. Nanda - Non Executive and Independent Director

Mr. A.K. Thakur - Non Executive and Independent Director

Dr. (Mrs.) Vasantha S Bharucha - Non Executive and Independent Director

Mr. Sudhir Nayar - Non Executive and Independent Director

B. Transactions with related parties

(i) Controlling Enterprise


a) Purchase of components and spares 71.94 222.99

b) Purchase of PPE - 7.74

c) Dividend paid 508.98 508.98


a) Advance for supply of goods 5.21 - -

9898


(ii) Key management personnel


a) Managerial remuneration: *Short-term employee benefitsMr. Eiichi Seto ** 80.43 145.63Mr. Kei Katayama 9.09 63.23Mr. T Imai 43.77 -Mr. Gopal Bansal ** 127.24 189.18Mr. Parvesh Madan 29.96 27.47

* Excludes contribution to the gratuity fund and provision for compensated absences determined on an actuarialbasis, as these are determined for the Company as a whole.

** Approval from the Shareholders by way of a special resolution is being sought at the ensuing Annual GeneralMeeting for payment of managerial remuneration as Minimum Remuneration to Managing Director & CEO andWhole-time Director & CFO in view of inadequacy of profits and ratification of payment of excess remunerationaggregating to Rs. 44.18 lakhs paid during the financial year ended 31 March 2018. In terms of the provisions of theCompanies Act 2013, the amount will be refunded to the Company by the concerned directors in case it is notapproved by the shareholders. Additionally, commission of 1% of the net profits computed in accordance withSection 198 of the Companies Act, 2013, will be paid to the Managing Director & CEO and to the Whole-timeDirector & CFO upon receipt of the aforesaid shareholder(s) approval.

Sitting Fee and Commission - Independent Directors

Mr. S.K. Tuteja

– Sitting fee 8.21 9.00

– Commission 3.00 8.00

Mr. P.K. Nanda



Mr. A.K. Thakur



Dr. (Mrs.) Vasantha S Bharucha



Mr. Sudhir Nayar




b) Remuneration payable at the year end - 123.00 123.00

99

NOTES FORMING PART OF THE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)38 Employee benefits

(i) Assets and liabilities relating to employee benefits


Non-current

Liability for gratuity 1,836.31 1,984.11 2,051.00

Liability for compensated absences 2,432.67 2,261.93 1,818.11

4,268.98 4,246.04 3,869.11

Current

Liability for gratuity 392.19 354.02 304.54

Liability for compensated absences 801.09 720.80 725.74

Liability for superannuation 36.66 41.59 36.11

1,229.94 1,116.41 1,066.39

Total 5,498.92 5,362.45 4,935.50

For details about the related employee benefit expenses, refer to note no. 27.

(ii) Defined benefit plan - Gratuity

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days salary(includes dearness allowance) last drawn for each completed year of service. The same is payable on terminationof service, or retirement, or death whichever is earlier. The benefits vest after five years of continuous service.Gratuity benefits valued are in accordance with the payment of Gratuity Act, 1972.

The above defined benefit plan exposes the Company to following risks:

Interest rate risk:

The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, thedefined benefit obligation will tend to increase.

Salary inflation risk:

Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk:

This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal,disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward anddepends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstatewithdrawals because in the financial analysis the retirement benefit of a short career employee typically costs lessper year as compared to a long service employee.

The Company actively monitors how the duration and the expected yield of the investments are matching theexpected cash outflows arising from the employee benefit obligations. The Company has not changed the processesused to manage its risks from previous periods. The funds are managed by specialised team of Life InsuranceCorporation of India.

100100


a) FundingThis is a funded benefit plan for qualifying employees. The Company makes contributions to Life InsuranceCorporation of India ("LIC of India"). The assets managed by the fund manager are highly liquid in nature andthe Company does not expect any significant liquidity risks.The Company expects to pay Rs. 475 lakhs in contribution to its defined benefit plans in 2018-19.

b) Reconciliation of the net defined benefit liability

Particulars As at As at31 March 2018 31 March 2017

Balance at the beginning of the year 3,883.25 3,555.85Benefits paid (267.16) (155.88)Current service cost 293.68 285.68Interest cost 277.48 273.01Actuarial (gains) losses recognised in other comprehensive income (78.87) (75.41)

Balance at the end of the year 4,108.38 3,883.25c) Reconciliation of the present value of plan assets

Particulars As at As at31 March 2018 31 March 2017

Balance at the beginning of the year 1,545.12 1,200.31Contributions paid into the plan 471.46 391.03Benefits paid (267.16) (155.88)Expected return income on plan assets 121.90 103.45Remeasurement Gain - Return on Plan Assets recognised 8.56 6.21in Other Comprehensive income

Balance at the end of the year 1,879.88 1,545.12d) Expense recognised in profit or loss

Particulars Year ended Year ended31 March 2018 31 March 2017

Current service cost 293.68 285.68Interest cost 155.58 169.56

449.26 455.24e) Remeasurements recognised in other comprehensive income


Actuarial (gain) on defined benefit obligation (78.87) (75.41)Remeasurement Gain - Return on Plan Assets (8.56) (6.21)

(87.43) (81.62)f) Plan assets

The plan assets are maintained with Life Insurance Corporation of India Gratuity Scheme. The details of investmentsmaintained by Life Insurance Corporation are not available with the Company and have not been disclosed.

101

g) Actuarial assumptions


Discount rate (per annum) 7.70% p.a 7.40% p.a 7.85% p.aFuture salary growth rate (per annum) 9.00% p.a 9.00% p.a 9.00% p.aAttrition rate 5.00% p.a 5.00% p.a 5.00% p.aRetirement age 58 years 58 years 58 yearsAssumptions regarding future mortality are based on Indian Assured Lives (IAL) 2006-08 Ultimate rates.

h) Sensitivity analysisReasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding otherassumptions constant, would increase / (decrease) defined benefit obligation by the amounts shown below:-

Particulars As at 31 March 2018 As at 31 March 2017Increase Decrease Increase Decrease

Discount rate (0.5% movement) (138.83) 147.84 (134.17) 142.99Future salary growth rate (1.0% movement) 298.71 (268.68) 288.15 (258.89)Attrition rate (0.5% movement) (14.69) 10.48 (16.88) 12.06"The above sensitivity analyses are based on a change in an assumption while holding all other assumptionsconstant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. Whencalculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same methods(present value of defined benefit obligation calculated with the projected unit credit method at the end of the reportingperiod) has been applied as when calculating the defined benefit liability recognised in the balance sheet.The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to theprior period.Expected benefit paymentsUndiscounted amount of expected benefit payments for next 10 years are as follows:

As at As at31 March 2018 31 March 2017

Within 1 year 412.80 366.172-5 years 1,617.08 1,484.466-10 years 2,188.10 2,154.67After 10 years 3,925.51 3,546.13

(iii) Defined contribution plansThe Company makes contribution towards employees' provident fund, superannuation fund and employees' stateinsurance plan scheme. Under the schemes, the Company is required to contribute a specified percentage of payrollcost, as specified in the rules of the scheme, to these defined contribution schemes. The Company has recognisedRs. 982.02 lakhs (previous year Rs. 924.64 Lakhs) during the year as expense towards contribution to these plans.

Particulars* Yeard ended Year ended31 March 2018 31 March 2017

Provident fund 790.32 757.35Superannuation fund 184.41 160.85Employees' state insurance scheme 7.29 6.44

982.02 924.64* Included in contribution to provident and other funds in note 27


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39 Financial Instruments - Risk Management and Fair Values

(A) Financial risk management

In course of its business, the Company is exposed to certain financial risks that could have significant influence onthe Company’s business and operational / financial performance. These include market risk (including currencyrisk, interest rate risk ), credit risk and liquidity risk.

The Board of Directors reviews and approves risk management framework and policies for managing these risksand has constituted Risk management committee of the Board to monitor suitable mitigating actions taken by themanagement to minimize potential adverse effects and achieve greater predictability to earnings.

The Company uses derivative financial instruments to hedge risk exposures in accordance with the Company’spolicies as approved by the board of directors.

The Company has exposure to the following risk arising from financial instruments:

– Market risk (refer (I))

– Credit risk (refer (II)) and

– Liquidity risk (refer (III))

(I) Market risk

Market risk is the risk of any loss in future earnings, in realisable fair values or in future cash flows that may resultfrom fluctuations in the pricing of a financial instrument. The Company’s activities expose it primarily to the financialrisks of changes in foreign currency exchange rates and interest rates as future specific market changes cannot benormally predicted with reasonable accuracy.

i . Foreign currency risk management:

The company is exposed to foreign currency risk to the extent that there is a mismatch between the currencies inwhich sales, purchases and borrowings are denominated and functional currency of the Company, i.e. INR (Rs.).The currencies in which these transactions are primarily denominated are US dollar, Euro and Yen. The Companyuses currency swap contracts to hedge its currency risk as per the approved policy of the Company. The Company'spolicy is to ensure that its net exposure is kept to an acceptable level which will not have material effect on theprofits of the company if there is any fluctuation in the currency rates. However, the Company has designated crosscurrency interest rate swaps derivatives as hedge relationship.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities atthe end of the reporting period are as follows.

As on 31 March 2018: (in lakhs)

Liabilities Assets

Currency Gross Exposure Net liability Gross Exposure Net Asset Net overallExpsoure hedged using Exposure on Exposure hedged using Expsoure on exposure onin foreign derivatives i.e. the foreign in foreign derivatives the foreign the foreigncurrency cross currency currency currency currency currency-net

interest rate assets/netswaps liabilities)

USD 215.50 215.50 - 1.68 - 1.68 1.68

EUR 8.56 - 8.56 (8.56)

YEN 19.40 - 19.40 - - - (19.40)

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As on 31 March 2017: (in lakhs)

Liabilities Assets



USD 51.70 51.70 - 0.80 - 0.80 0.80EUR 5.14 - 5.14 - - - (5.14)

As on 1 April 2016: (in lakhs)

Liabilities Assets



USD - - - - - - -EUR 0.34 - 0.34 - - - (0.34)

-Sensitivity analysis:A reasonably possible strengthening (weakening) of the Indian Rupee against below currencies at 31 March 2018, 31 March2017 and 1 April 2016 would have impacted the measurement of financial instruments denominated in foreign currency andincreased / decreased profit or loss by the amounts shown below. This analysis is peformed on foreign currency denominatedmonetary financial assets and financial liabilities outstanding as at the year end. This analysis assumes that all other variables,in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

USD Impact in equivalent INR

Particulars 31 March 2018 31 March 2017 1 April 2016

Profit or loss 1.08 0.52 –

Euro Impact in equivalent INR


Profit or loss (7.05) (3.56) (0.26)

Yen Impact in equivalent INR


Profit or loss (0.12) – –


104104

i i . Interest rate risk management:

The Company is exposed to interest rate risk pertaining to funds borrowed at both fixed and floating interest rates. Therisk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings by the useof interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined riskappetite, ensuring the most cost-effective hedging strategies.

– Sensitivity analysis:

The sensitivity analysis below has been determined based on the exposure to interest rates at the end of the reportingperiod. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key managementpersonnel and represents Management’s assessment of the reasonably possible change in interest rates.

A reasonably possible change of 1 % in interest rates at the reporting date would have increased / decreased the profit orloss by the amounts shown below. This analysis assumes that all other variables remain constant.


Profit or loss 70.00 5.11 55.00

The Company's long term external commercial borrowings carries floating rate of interest and same is hedged by thecompany using cross currency interest rate swaps. They are, therefore, not subject to interest rate risk since neither thecarrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

(II) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to theCompany.

The Company primarily has the exposure from following type of customers :

– Dealers

– Government institutions

To manage trade receivable, the Company periodically assesses the financial reliability of customers, taking into accountthe financial conditions, economic trends, analysis of historical bad debts, aging of such receivables and country in whichcustomers operate.

The Company's exposure to credit risk for trade receivable by the type of customers is as follows:

Carrying amount31 March 2018 31 March 2017 1 April 2016

Dealers 8,377.05 9,788.52 7,266.12

Government institutions 3,184.12 1,549.25 2,705.99

Others 166.75 137.78 308.28

11,727.92 11,475.55 10,280.39

The Company makes an allowance for doubtful debts using the simplified approach for expected credit loss model andon specific identification basis.


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Movement in expected credit loss allowance


Balance at the beginning of the year 277.12 304.93Add: Incremental expected credit allowance 82.57 -Less: Bad debts written off / reversal of provisions – 27.81

Balance at the end of the year 359.69 277.12

The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings.

(III) Liquidity riskLiquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity riskmanagement is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. TheCompany has obtained sufficient working capital limits from various banks to take care of liquidity risks. Furthermore, theCompany has access to funds through commercial papers.The table below summarises the maturity profile remaining contractual maturity period at the balance sheet date for itsnon derivative financial liabilities based on the undiscounted cash flows.

Particulars Due in Ist year Due in 2nd to Due after Carrying5th year 5th year amount

31 March 2018Trade Payables 21,182.30 – – 21,182.30Other financial liabilities (excluding current 4,430.02 – 1,156.75 5,586.77maturities of borrowings)Borrowings 9,338.91 11,848.93 – 21,187.84

34,951.23 11,848.93 1,156.75 47,956.91

31 March 2017Trade Payables 19,071.14 - - 19,071.14

Other financial liabilities (excluding 2,468.35 3.37 1,185.25 3,656.97current maturities of borrowings)

Borrowings 582.41 3,500.77 - 4,083.18

22,121.90 3,504.14 1,185.25 26,811.29

1 April 2016Trade Payables 17,192.57 - - 17,192.57

Other financial liabilities (excluding current 1,956.44 155.56 1,010.50 3,122.50maturities of borrowings)

Borrowings 5,567.56 49.38 - 5,616.94

24,716.57 204.94 1,010.50 25,932.01


106106

The table below indicates the Contractual cash flows in respect of cross currency interest rate swap contracts representsthe hedging cost to be paid in subsequent periods. These cash flows have been disclosed under financial liabilities.

Particulars Due in Ist year Due in 2nd to Due after Carrying5th year 5th year amount

31 March 2018Cross currency interest rate swaps 159.77 - - 159.77

159.77 - - 159.7731 March 2017Cross currency interest rate swaps 189.72 - - 189.72

189.72 - - 189.721 April 2016Cross currency interest rate swaps - - - -

- - - -39. Financial Instruments - Risk Management and Fair Values

(B) Accounting classification and fair values

The following table shows the carrying amounts and fair value of financial assets and financial liabilities includingtheir level in the fair value hierarchy:

Note Level As at 31 March 2018 As at 31 March 2017 As at 1 April 2016

of FVTPL FVOCI Amortised FVTPL FVOCI Amortised FVTPL FVOCI Amortisedhierarchy cost cost cost

Financial assetsNon-currentLoans (ii) 3 - - 326.25 - - 238.32 - - 189.07Other financial assets (ii) 3 - - 156.50 - - 90.92 - - -CurrentTrade receivable (iv) 3 - - 11,727.92 - - 11,475.55 - - 10,280.39Cash and cash equivalents (iv) 3 - - 1,995.50 - - 538.44 - - 766.80Bank balances other than cash and (iv) 3 - - 200.28 - - 225.40 - - 2,846.89cash equivalents aboveLoans (i) 3 - - 105.67 - - 69.56 - - 69.46Other financial assets (iv) 3 - - 100.40 - - 61.08 - - 232.40

Total financial assets - - 14,612.52 - - 12,699.27 - - 14,385.01Financial liabilitiesNon-currentBorrowings (iii) - - 11,848.93 - - 3,500.77 - - 49.38Other financial liabilities (iv) - - 1,156.75 - - 1,188.62 - - 1,166.06CurrentBorrowings (i) - - - 7,000.00 - - 511.29 - - 5,500.00Trade payables (iv) 3 - - 21,182.30 - - 19,071.14 - - 17,192.57Other financial liabilities (iv) 2 - 159.77 6,768.92 - 189.72 2,539.47 - - 2,024.00

Total financial liabilities - 159.77 47,956.90 - 189.72 26,811.29 - - 25,932.01


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Note:

(i) Fair valuation of financial assets and liabilities with short term maturities is considered as approximate to respectivecarrying amount due to the short term maturities of these instruments.

(ii) Fair value of non-current financial assets has not been disclosed as there is no significant differences between carryingvalue and fair value.

(iii) The fair value of borrowings is based upon a discounted cash flow analysis that used the aggregate cash flows fromprincipal and finance costs over the life of the debt and current market interest rates

(iv) Trade receivables, cash and cash equivalents, bank balances other than cash and cash equivalents, other financialassets, trade payables and other financial liabilities have fair values that approximate to their carrying amounts due totheir short-term nature.

The Company determines the fair value of its financial instruments on the basis of the following hierarchy:

Level 1: The fair value of financial instruments that are quoted in active markets are determined on the basis of quotedprice for identical assets or liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using valuationtechniques based on observable market data.

Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations using inputsthat are not based on observable market data (unobservable inputs).

There are no transfers between Level 1, Level 2 and Level 3 during the year ended 31 March 2018 and 31 March 2017.

Measurement of fair values

Fair value hierarchy

Fair value measurement for the cross currency interest rate swap has been categorised as level 2 fair value based on theinputs to the valuation technique used.

Valuation technique

Cross currency interest rate swaps: The fair value is calculated as the present value of the estimated future cash flows.Estimates of future floating-rate cash flows are based on quoted swap rates, futures prices and interbank borrowing rates.Estimated cash flows are discounted using a yield curve constructed from similar sources and which reflects the relevantbenchmark interbank rate used by market participants for this purpose when pricing interest rate swaps. The fair valueestimate is subject to a credit risk adjustment that reflects the credit risk of the Company and of the counterparty; this iscalculated based on credit spreads derived from current credit default swap or bond prices.

40 INCOME TAX

(a) Income tax recognised in profit or loss Year ended Year ended31 March 2018 31 March 2017

Current taxIn respect of current year 242.19 2,184.62In respect of previous year 84.62 -

326.81 2,184.62Deferred taxIn respect of current year (230.71) (71.06)

(230.71) (71.06)Total income tax expense recognised in profit or loss 96.10 2,113.56


108108

(b) Income tax expense for the year reconciled to the Year ended Year endedaccounting profit: 31 March 2018 31 March 2017Profit / (loss) before tax 945.80 8,414.55Income tax rate 34.608% 34.608%Income tax expense 327.32 2,912.11Effect of deduction u/s 32 AC – (179.75)Effect of Research and development expenses (354.51) (625.54)under section 35 (additional deduction)Effect of Non-deductible expenses / 52.38 35.64income (permanent differences)Tax related to prior years 84.62 -Effect of change in tax rate 6.37 (14.05)Others (20.08) (14.85)

Income tax expense recognised in profit or loss 96.10 2,113.56

(c) Income tax recognized in other Year ended Year endedcomprehensive income 31 March 2018 31 March 2017

Deferred tax

Arising on income and expenses recognised in other comprehensive income:

Remeasurements of defined benefit obligations (30.55) (28.25)

Effective portion of loss on hedging instruments in cash flow hedge 46.82 14.64

Total income tax recognised in other comprehensive income 16.27 (13.61)

(d) Analysis of deferred tax assets/ liabilities

Ast at Recognized in Recognized in As at1 April 2016 profit or loss other compre- 31 March 2017

hensive incomeDeferred tax (liabilities)/ assets in relation to :Property, plant and equipment and (2412.20) (147.16) - (2559.36)intangible assets (net)

Research and Development related (12.49) (10.66) - (23.15)Capital Work in Progress allowed underSec 35(2AB) of the Income Tax Act, 1961.

Provisions- Employee benefits 1,636.55 103.20 (28.25) 1,711.50Finance lease liabilities 41.55 34.35 - 75.90

Other items (15.92) 0.96 - (14.96)Provisions- others 180.49 39.35 - 219.84Cash flow hedges - 51.02 14.64 65.66

Total (582.02) 71.06 (13.61) (524.57)


109

Ast at Recognized in Recognized in As at1 April 2017 profit or loss other compre- 31 March 2018

hensive incomeDeferred tax (liabilities)/ assets in relation to :Property, plant and equipment and (2,559.36) (1,074.66) - (3,634.02)intangible assets (net)Research and Development related Capital (23.15) 23.15 - -Work in Progress allowed under Sec 35(2AB) of the Income Tax Act, 1961.Provisions- Employee benefits 1,711.50 74.94 (30.55) 1,755.89Finance lease liabilities 75.90 (16.03) - 59.87Other items (14.96) 4.62 - (10.34)Provisions- others 219.84 (47.24) - 172.60Cash flow hedges 65.66 (56.65) 46.82 55.83Depreciation carry forwards - 1,080.39 - 1,080.39Unused tax credit (Mat credit entitlement) - 242.19 - 242.19

Total (524.57) 230.71 16.27 (277.59)41 Dividends

a. Proposed DividendThe board has proposed a dividend of Rs. 1.50 per equity share of Rs. 10 each fully paid up amounting toRs. 261.70 lakhs (including dividend distribution tax), subject to approval by the shareholders at the ensuing AnnualGeneral Meeting.

b. The following dividends were declared and paid by the Company during the year in foreign currency:


Number of Non-resident shareholders* (nos.) 1 1Number of shares held as on record date* (nos.) 2,170,747 2,170,747Amount remitted during the year* 173.65 173.65Financial Year to which dividend pertains 2016-2017 2015-2016* excludes non-resident shareholders to whom dividend is paid in Indian Rupees.

42 CAPITAL MANAGEMENTThe Company manages its capital to ensure that the Company will be able to continue as a going concern, whilemaximising the return to stakeholders through efficient allocation of capital towards expansion of business, optimisationof working capital requirements and deployment of surplus funds into various investment options. The Company uses theoperational cash flows and equity to meet its capital requirements. The funding requirements are met through equity,internal accruals and a combination of both long term and short term borrowings. The Company is not subject to anyexternally imposed capital requirements.The management of the Company reviews the capital structure of the Company on regular basis and uses debt equityratio to monitor the same. As part of this review, the management of the Company considers risks associated with themovement in the working capital and capex needs.The following table summarises the capital of the Company:


Equity 39,805.57 40,379.57 35,446.28Debt (long-term and short-term borrowings 21,187.84 4,083.18 5,616.94including current maturities)

Total 60,993.41 44,462.75 41,063.22


110110



RAJESH ARORA PARVESH MADAN EIICHI SETOPartner Company Secretary Managing Director & CEOMembership Number : 076124Place : New Delhi Place : New DelhiDate : 23 May 2018 Date : 23 May 2018

NOTES FORMING PART OF THE IND AS FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018(All amounts in Rs. Lakhs except for share data)43 Research and development costs are as follows:

a. Revenue expenditure Year ended Year ended31 March 2018 31 March 2017

Salaries, wages, bonus and compensated absences 922.32 927.66Contribution to provident and other funds 62.95 67.83Cost of materials consumed 300.09 218.27Testing and other laboratory expenses 301.59 224.96Travelling and conveyance 58.78 62.23Others 171.14 159.62

Total 1,816.87 1,660.57

b. Capital expenditureCapitalised 642.25 142.76Work-in-progress - 40.50

44 The specified bank notes (SBN) as defined under the notification issued by the Ministry of Finance, Department ofEconomic dated 08 November, 2016 are no longer in existence. Hence the Company has not provided the correspondingdisclosures as prescribed in Schedule III to the Companies Act, 2013. The disclosure of SBN made in the financialstatements for 31 March 2017 is as follows:

Particulars Specified Other Denomination TotalBank Notes* Notes

Closing Cash in hand as on 08 November 2016 7.21 0.45 7.66(+) Permitted receipts - 23.51 23.51(-) Permitted payments - 15.85 15.85(-) Amount deposited in Banks 7.21 - 7.21Closing Cash in hand as on 30 December 2016 - 8.11 8.11

* For the purpose of this disclosure, the term 'Specified Bank Notes' shall have the same meaning provided in thenotification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O. 3407 (E)dated 8 November 2016

45 The Supreme Court of India had on 29 March 2017 passed an order which restricted sale and registration of BS-IIIemission norms compliant (‘BS-III’) vehicles in India effective 01 April 2017. The Company had taken necessary steps tobe in compliance with the aforesaid order. The Company had also decided to take back BS-III vehicles lying with thedealers at the year end and had accounted for such sales returns amounting to Rs. 2,220.02 lakhs in its books ofaccounts. Further, certain BS-III components lying with the Company (including those forming part of impacted BS-IIIvehicles) and other related costs needed to be written off as no future benefit is envisaged. Consequently, the totalamount of BS-III stock written off (including margin loss on sales returns) during the year ended 31 March 2017 amountedto Rs. 1,009.97 lakhs. The Company took necessary steps to convert the BS-III vehicles in stock to ensure compliancewith BS-IV emission norms. Related costs for such conversion, accordingly, has been accounted for as and whenincurred. The Company has during the current year additionally, identified certain components aggregating to Rs. 66.04lakhs which are no longer usable and accordingly value has been written down in the Statement of profit and loss.

111

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SML ISUZU LIMITED1. Report on the Audit of Ind AS Financial Statements

We have audited the accompanying Ind A S financial statements of SML Isuzu Limited ("the Company"), which comprisethe Balance Sheet as at 31 March 2018, the Statement of Profit and Loss, the Statement of Changes in Equity and theStatement of Cash Flows for the year then ended, and summary of the significant accounting policies and other explanatoryinformation.

2. Management's Responsibility for the Ind AS Financial StatementsThe Company's Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013("the Act") with respect to the preparation of these Ind AS financial statements that give a true and fair view of the stateof affairs, profit/loss including other comprehensive income, changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of theAct for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;and design, implementation and maintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of theInd AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud orerror.In preparing the financial statements, management is responsible for assessing the Company's ability to continue as agoing concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accountingunless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but todo so.

3. Auditor's ResponsibilityOur responsibility is to express an opinion on these Ind AS financial statements based on our audit.We have taken into account the provisions of the Act, the accounting and auditing standards and matters which arerequired to be included in the audit report under the provisions of the Act and the Rules made thereunder.We conducted our audit of the Ind AS financial statements in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind ASfinancial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risksof material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments,the auditor considers internal financial control relevant to the Company's preparation of the Ind AS financial statementsthat give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors, as well as evaluating the overall presentation of the Ind AS financialstatements.We are also responsible to conclude on the appropriateness of management's use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that maycast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required to draw attention in the auditor's report to the related disclosures in the financial statements or, ifsuch disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up tothe date of the auditor's report. However, future events or conditions may cause an entity to cease to continue as a goingconcern.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinionon the Ind AS financial statements.

112112

4. OpinionIn our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind ASfinancial statements give the information required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31 March2018, its profit including other comprehensive income, changes in equity and its cash flows for the year ended on thatdate.

5. Report on Other Legal and Regulatory Requirements(i) As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government in

terms of Section 143(11) of the Act, we give in "Annexure A" a statement on the matters specified in paragraphs 3and 4 of the Order.

(ii) As required by Section 143(3) of the Act, we report that:a) We have sought and obtained all the information and explanations which to the best of our knowledge and

belief were necessary for the purposes of our audit.b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears

from our examination of those books.c) The Balance Sheet, the Statement of Profit and Loss, the Cash Flow Statement and Statement of Changes in

Equity dealt with by this Report are in agreement with the books of account.d) In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed

under section 133 of the Act.e) On the basis of the written representations received from the directors as on 31 March 2018 taken on record

by the Board of Directors, none of the directors is disqualified as on 31 March 2018 from being appointed asa director in terms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls with reference to financial statements of theCompany and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of theCompanies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and accordingto the explanations given to us:i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS

financial statements. Refer Note 32 to the Ind AS financial statements.ii. The Company has made provision, as required under the applicable law or accounting standards, for

material foreseeable losses, if any, on long-term contracts including derivative contracts. Refer Note 16B to the Ind AS financial statements.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Educationand Protection Fund by the Company.

iv. The disclosures in the Ind AS financial statements regarding holdings as well as dealings in specifiedbank notes during the period from 8 November 2016 to 30 December 2016 have not been made sincethey do not pertain to the financial year ended 31 March 2018. However amounts as appearing in theaudited financial statements for the period ended 31 March 2017 have been disclosed.

.

For B S R & Associates LLP

Chartered AccountantsFirm Registration No.: 116231W/W-100024

Rajesh Arora

Place: New Delhi PartnerDate : 23 May, 2018 Membership No. 076124

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Annexure-A to the Auditors’ Report

Annexure ‘A’ referred to in paragraph 5 (i) of the Independent Auditors’ Report to the Members of SML ISUZU Limitedon the Ind AS Financial Statement for the year ended 31 March 2018, we report that:

(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation offixed assets.

(b) The Company has a regular programme of physical verification of its fixed assets by which all fixed assets areverified in a phased manner over a period of three years. In accordance with this programme, certain fixed assetswere verified during the year and no material discrepancies were noticed on such verification. In our opinion, thisperiodicity of physical verification is reasonable having regard to the size of the Company and the nature of itsassets.

(c) According to the information and explanations given to us and on the basis of our examination of the records of theCompany, the title deeds of immovable properties are held in the name of the Company.

(ii) The inventory, except materials-in-transit and stocks lying with third parties, has been physically verified by the managementduring the year. In our opinion, the frequency of such verification is reasonable. The discrepancy noted on verificationbetween physical stock and book records were not material and have been properly dealt with in the books of account.For stocks lying with third parties at the year-end, written confirmations have been obtained.

(iii) According to the information and explanations given to us, there are no companies, firms, limited liability partnerships orother parties covered in the register required to be maintained under Section 189 of the Companies Act, 2013 ('the Act').Accordingly, paragraph 3(iii) of the Order is not applicable.

(iv) According to the information and explanation given to us and on the basis of our examination of the records of theCompany, the Company has not given any loans, or made any investments, or provided any guarantee, or security asspecified under Section 185 and 186 of the Companies Act, 2013. Accordingly, paragraph 3(iv) of the Order is notapplicable.

(v) The Company has not accepted any deposits covered under Section 73 to 76 of the Act or other provisions of the Actand rules framed thereunder.

(vi) The Central Government has not prescribed the maintenance of cost records under Section 148(1) of the Act, for any ofthe products manufactured/ Services rendered by the Company.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of theCompany, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues includingProvident fund, Employees' State Insurance, Income-Tax, Goods and Service Tax ('GST'), Sales Tax, ServiceTax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other material statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of Providentfund, Employees' State Insurance, Income-Tax, GST, Sales Tax, Service Tax, Duty of Customs, Duty of Excise,Value Added Tax, Cess and other statutory dues were in arrears as at 31 March 2018 for a period of more than sixmonths from the date they became payable.

(b) According to the information and explanations given to us, there are no dues of Duty of Customs, Income-Tax,GST , Sales Tax, Service Tax, Duty of Excise and Value Added Tax which have not been deposited by theCompany on account of disputes except as mentioned below:

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Name of Nature of dues Amount Amount Period to Forum wherethe statute disputed deposited which the dispute is pending

Rs. Lakhs Rs. Lakhs amountrelates

Central Excise duty 4.25 (includes 2.13 Apr 2000 to Customs Excise and ServiceExcise Act, penalty Mar 2004 Tax Appellate Tribunal1944 Rs. 2.12 lakhs) (CESTAT)

Central Excise Duty 1.94 Nil Oct 2004 to The Supreme Court of IndiaExcise Act, Mar 20051944

Finance Act, Service Tax 5.70 (includes Nil 2005-2006 Commissioner (Appeals)1994 penalty

Rs. 2.85 lakhs)

Finance Act, Service Tax 5.70 (includes Nil 2005-2006 Customs Excise and Service1994 penalty Tax Appellate Tribunal

Rs. 2.85 lakhs) (CESTAT)

Central Excise Duty 1.89 Nil Oct 2006 to Customs Excise and ServiceExcise Act, Jun 2008 Tax Appellate Tribunal1944 (CESTAT)

Finance Act, Service Tax 4.26 (includes Nil Apr 2006 to Customs Excise and Service1994 penalty Dec. 2008 Tax Appellate Tribunal

Rs. 2.13 lakhs) (CESTAT)

Finance Act, Service Tax 3.36 Nil Apr 2006 to Customs Excise and Service1994 Dec. 2008 Tax Appellate Tribunal

(CESTAT)

Central Excise Duty 3.62 (includes Nil Apr 2008 to Customs Excise and ServiceExcise Act, penalty Jun 2009 Tax Appellate Tribunal1944 Rs. 1.81 lakhs) (CESTAT)

Finance Act, Service Tax 1.15 Nil Jun 2009 to Commissioner (Appeals)1994 Mar 2011

Central Excise Duty 25.00 Nil Dec 2008 to Customs Excise and ServiceExcise Act, Jul 2009 Tax Appellate Tribunal1944 (CESTAT)

Finance Act, Service Tax 8.66 Nil Oct 2009 to Customs Excise and Service1994 Sep. 2010 Tax Appellate Tribunal

(CESTAT)

Central Excise Duty 4.05 (includes Nil Apr. 2010 to Customs Excise and ServiceExcise Act, penalty Sep 2011 Tax Appellate Tribunal1944 Rs. 1.83 lakhs) (CESTAT)

Sub-Total (A) 69.58 2.13

Central Sales Sales Tax 218.23 87.30 Apr 2000 to Sales Tax appellate Tribunal,Tax Act, 1956 Sep 2000 Chandigarh

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Punjab VAT Valued Added Tax 1.57 0.39 Aug 2007 Deputy Excise and TaxationAct, 2005 Commissioner-cum-Joint

Director Enforcement, Patiala

U P Trade Sales Tax 15.94 7.20 1993-1994 Additional CommissionerTax Act, 1948 (Appeals), Lucknow

U P Trade Sales Tax 5.80 0.87 2005-06 Assistant CommissionerTax Act, 1948 Grade-II

Gujarat Sales Tax 161.68 Nil 2008-09 Joint Commercial TaxSales Tax Commissioner (Appeals)Act

The West Value Added Tax 5.80 Nil 2008-2009 Assistant Officer Sales TaxBengal ValueAdded TaxRules, 2005

The West Value Added Tax 8.51 Nil 2009-2010 W.B.C.T. Appellate &Bengal Value Revisional BoardAdded TaxRules, 2005

The West Sales Tax 5.70 Nil 2009-2010 W.B.C.T. Appellate &Bengal Value Revisional BoardAdded TaxRules, 2005

Kerala Value Value Added Tax 1.42 0.43 2010-2011 Assistant CommissionerAdded Tax Special Circle-TrivandrumRules, 2005



The West Entry Tax 1.13 Nil 2012-2013 W.B.C.T. Appellate &Bengal Value Revisional Board, Bench-VIAdded TaxRules, 2005

Central Sales Sales Tax 3.17 Nil 2012-2013 Sr. JCCT/LTO-W.B.Tax Act, 1956

U P Trade Sales Tax 6.88 4.98 2016-2017 Assistant CommissionerTax Act, 1948 Ghaziabad

AP VAT Act Value Added Tax 3.55 0.44 2016-2017 Assistant Officer and2005 Deputy Commercial Tax

Officer Vijayawada

AP VAT Act Value Added Tax 210.25 26.28 2013-2014 to The Appellate Joint2005 2015-16 Commissioner

Sub-Total (B) 745.59 156.67

116116

Income-tax Income-tax 101.55 88.61 FY 2004-05 Income-tax Appellate TribunalAct, 1961





Income-tax Income-tax 42.41 Nil FY 2008-09 Income-tax Appellate Tribunal

Act, 1961

Income-tax Income-tax 82.82 82.82 FY 2006-07 Income-tax Appellate Tribunal

Act, 1961


Act, 1961


Act, 1961

Income-tax Income-tax 31.86 15.44 FY 2011-12 Income-tax Appellate Tribunal

Act, 1961


Act, 1961


Act, 1961

Income-tax Income-tax 34.16 Nil FY 2013-14 Commissioner of Income-Tax

Act, 1961 (appeals)

Income-tax Income-tax 189.58 25.00 FY 2014-15 Commissioner of Income-Tax

Act, 1961 (appeals)

Sub Total (C) 1,538.47 970.97

Total (A+B+C) 2,353.64 1,129.77

(viii) According to the information and explanations given to us, the Company has not defaulted in repayment of dues tobanks. Further, the Company did not have any outstanding dues to any financial institutions, government or debentureholders during the year.

(ix) According to the information and explanations given to us, the term loan taken by the Company has been applied for thepurposes for which it was raised. However, pending utilization of term loan, the funds amounting to Rs. 1,135 lakhs weretemporarily invested in fixed deposits. Also, refer to note 10 to the financial statements. According to the informationand explanation given to us, the Company has not raised any money by way of initial public offer (including debtinstruments) or further public offer during the year.

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(x) According to the information and explanations given to us, no significant fraud by the Company or on the Company byits officers or employees has been noticed or reported during the course of our audit for the year.

(xi) According to the information and explanations given to us and based on our examination of the records of the Company,theCompany has paid managerial remuneration in excess of amounts as laid down under the provisions of Section 197 readwith Schedule V to the Act to its Managing Director & CEO and Whole-time Director & CFO. As informed to us, approvalfrom shareholders will be sought in the ensuing Annual General Meeting ('AGM') and if the shareholder approval is notreceived then the excess amount will be recovered by the Company from such directors, as also confirmed by therespective directors.

(xii) According to the information and explanations given to us, the Company is not a nidhi Company. Accordingly, paragraph3(xii) of the Order is not applicable.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company,transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and detailsof such transactions have been disclosed in the Ind AS financial statements as required by the applicable accountingstandards.

(xiv) According to the information and explanations give to us and based on our examination of the records of the Company,the Company has not made any preferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly, paragraph 3 (xiv) of the order is not applicable.

(xv) According to the information and explanations given to us and based on our examination of the records of the Company,the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly,paragraph 3(xv) of the Order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.

For B S R & Associates LLPChartered AccountantsFirm Registration No.: 116231W/W-100024

Rajesh AroraPlace: New Delhi PartnerDate : 23 May 2018 Membership No.: 076124

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Annexure-B to the Auditors’ Report

Annexure B referred to in paragraph 5 (ii)(f) of the Independent Auditor's Report of even date to the Members of SMLIsuzu Limited being report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of theCompanies Act, 2013 (" the Act" )

We have audited the internal financial controls over financial statements with reference to financial statements of SML IsuzuLimited ("the Company") as of 31 March 2018 in conjunction with our audit of the Ind AS financial statements of the Companyfor the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internalcontrol over financial statement criteria established by the Company considering the essential components of internal controlstated in the Guidance Note on 'Audit of Internal Financial Controls Over Financial Reporting' issued by the Institute ofChartered Accountants of India ('ICAI'). These responsibilities include the design, implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, includingadherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, theaccuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as requiredunder the Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial statements with referenceto financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemedto be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls, bothapplicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. ThoseStandards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls with reference to financial statements was establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controlssystem with reference to the financial statements and their operating effectiveness. Our audit of internal financial controlswith reference to financial statements included obtaining an understanding of internal financial controls with reference tofinancial statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgement,including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on theCompany's internal financial controls system over financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to financial statements is a process designed to provide reasonableassurance regarding the reliability of financial statements and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financial control with reference to financialstatements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurancethat transactions are recorded as necessary to permit preparation of financial statements in accordance with generally

119

accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect onthe financial statements.

Inherent Limitations of Internal Financial Controls with reference to Financial Statements

Because of the inherent limitations of internal financial controls with reference to financial statements, including the possibilityof collusion or improper management override of controls, material misstatements due to error or fraud may occur and not bedetected. Also, projections of any evaluation of the internal financial controls with reference to Financial Statements to futureperiods are subject to the risk that the internal financial control with reference to financial statements may become inadequatebecause of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to theInd AS financial statements and such internal financial controls with reference to the Ind AS financial statements wereoperating effectively as at 31 March 2018, based on the internal control with reference to financial statements criteria establishedby the Company considering the essential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

For B S R & Associates LLPChartered AccountantsFirm Registration No.: 116231W/W-100024

Rajesh AroraPlace: New Delhi PartnerDate : 23 May 2018 Membership No.: 076124

120120

AUDITOR'S CERTIFICATE ON CORPORATE GOVERNANCE

To the Members of SML Isuzu Limited

1. This certificate is issued in accordance with terms of our engagement letter dated 28 October 2017.

2. This certificate contains details of compliance of conditions of corporate governance by SML Isuzu Limited ('the Company')for the year ended 31 March 2018 as stipulated in Regulations 17-27, clause (b) to (i) of Regulation 46 (2) and paragraphsC, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)Regulations, 2015 ('Listing Regulations') pursuant to the Listing Agreement of the Company with Stock exchanges.

Management's Responsibili ty for compliance with the conditions of Listing Regulations

3. The compliance with the terms and conditions contained in the corporate governance is the responsibility of theManagement of the Company including the preparation and maintenance of all relevant supporting records and documents.

Auditors' responsibility

4. Our examination was limited to procedures and implementation thereof adopted by the Company for ensuring thecompliance of the conditions of Corporate Governance. It is neither an audit nor an expression of opinion on the financialstatements of the Company.

5. Pursuant to the requirements of the Listing Regulations, it is our responsibility to provide a reasonable assurancewhether the Company has complied with the conditions of Corporate Governance as stipulated in Listing Regulations forthe year ended 31 March 2018.

6. We conducted our examination of the Statement in accordance with the Guidance Note on Reports or Certificates forSpecial Purposes issued by the Institute of Chartered Accountants of India ("ICAI"). The Guidance Note requires thatwe comply with the ethical requirements of the Code of Ethics issued by the ICAI.

7. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Controlfor Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related ServicesEngagements.

Opinion

8. In our opinion, and to the best of our information and according to explanations given to us, we certify that the Companyhas complied with the conditions of Corporate Governance as stipulated in the above-mentioned Listing Regulations.

9. We state that such compliance is neither an assurance as to the future viability of the Company nor the efficiency oreffectiveness with which the management has conducted the affairs of the Company.

Restriction on Use

10. The certificate is addressed to and provided to the Members of the Company solely for the purpose to enable theCompany to comply with requirement of aforesaid Regulations, and should not be used by any other person or for anyother purpose. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to anyother person to whom this certificate is shown or into whose hands it may come without our prior consent in writing.

For B S R & Associates LLPChartered AccountantsFirm Registration number: 116231W/W-100024

Place: Gurugram Rajesh AroraDate: 23 May 2018 Partner

Membership number: 076124

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CERTIFICATE BY CHIEF EXECUTIVE OFFICER (CEO) AND CHIEF FINANCIAL OFFICER (CFO) UNDERREGULATION 17(8) OF SEBI (L ISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS)REGULATIONS, 2015.

We confirm that:

(A) We have reviewed the Financial Statements and the Cash Flow Statement for the Year ended 31st March,2018 and to the best of our knowledge and belief:

(i) These statements do not contain any materially untrue statement or omit any material fact or containstatements that might be misleading;

(ii) These statements together present a true and fair view of the Company's affairs and are in compliancewith existing accounting standards, applicable laws and regulations.

(B) There are, to the best of our knowledge and belief, no transactions entered into by the Company during theyear which are fraudulent, illegal or violative of the Company's Code of Conduct.

(C) We accept responsibility for establishing and maintaining internal controls for financial reporting and forevaluating the effectiveness of internal control systems of the Company pertaining to financial reporting andwe have disclosed to the auditors and the Audit Committee, deficiencies in the design or operation of suchinternal controls, if any, of which we are aware and the steps we have taken or propose to take to rectifythese deficiencies.

(D) We have indicated to the auditors and the Audit Committee:

(i) Significant changes, if any, in internal control over financial reporting during the year;

(ii) Significant changes, if any, in accounting policies made during the year and that the same have beendisclosed in the notes to the financial statements; and

(iii) Instances of significant fraud of which we have become aware and the involvement therein, if any, of theManagement or an employee having a significant role in the Company's internal control system overfinancial reporting.

Place : New Delhi EIICHI SETO GOPAL BANSALDate : 22 May 2018 Managing Director & CEO Whole-time Director & CFO

DECLARATION BY THE MANAGING DIRECTOR & CEO UNDER SEBI (LISTING OBLIGATIONS ANDDISCLOSURE REQUIREMENTS) REGULATIONS, 2015

I, Eiichi Seto, Managing Director & CEO of SML ISUZU LIMITED hereby confirm that all the Directors and Senior ManagementPersonnel of the Company have affirmed compliance with Company's Code of Conduct for the Financial Year ended 31st March,2018 in accordance with Regulation 26(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Place : Chandigarh EIICHI SETODate : 01 May 2018 Managing Director & CEO

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NOTICE OF ANNUAL GENERAL MEETINGNotice is hereby given that the 34th Annual General Meeting of the Company will be held at its Registered Office & Works atVillage Asron, Distt. Shahid Bhagat Singh Nagar (Nawanshahr), Punjab-144533 on 9th August, 2018 (Thursday) at 3:00 P.M.to transact the following business:

ORDINARY BUSINESS

1. To receive, consider and adopt the audited financial statements of the Company for the financial year ended 31st March2018 and the reports of the Board of Directors and Auditors thereon.

2. To declare dividend on equity shares.

3. To appoint a Director in place of Mr. Takeru Kikkawa (DIN 03107280), who retires by rotation and being eligible, offershimself for re-appointment.

4. To appoint a Director in place of Mr. Pankaj Bajaj (DIN 00337925), who retires by rotation and being eligible, offershimself for re-appointment.

5. To fix remuneration of Statutory Auditors, B S R & Associates LLP

To consider and, if thought fit, to pass with or without modification(s) the following as an Ordinary Resolution:

"RESOLVED THAT pursuant to Sections 139, 142 and all other applicable provisions of the Companies Act, 2013 andthe Rules framed there under (including any statutory modification(s) or re-enactment thereof for the time being in force)and pursuant to the approval of the Members at the Thirty-First Annual General Meeting for appointment of B S R &Associates LLP, Chartered Accountants (Registration No. 116231W/W-100024) as statutory auditors of the Company tohold office until the conclusion of the Thirty-Sixth Annual General Meeting of the Company, the Board be and is herebyauthorized to fix the remuneration payable to the statutory auditors for the period commencing from the financial year2018-19 until the conclusion of the Thirty-Sixth Annual General Meeting of the Company."

SPECIAL BUSINESS

6. Appointment of Mr. Gota Iwanami as Director liable to retire by rotation


"RESOLVED THAT pursuant to the provisions of Sections 149, 152 and all other applicable provisions of the CompaniesAct, 2013 and the Rules framed there under (including any statutory modification(s) or re-enactment thereof for the timebeing in force), Mr. Gota Iwanami (DIN 08094102), who was appointed by the Board of Directors as an AdditionalDirector of the Company with effect from 23rd March, 2018 and who holds office upto the date of this Annual GeneralMeeting of the Company in terms of Section 161 of the Companies Act, 2013 and in respect of whom the Company hasreceived a Notice in writing from a Member pursuant to Section 160 of the Companies Act, 2013 proposing his candidaturefor the office of Director of the Company, be and is hereby appointed as a Director of the Company, liable to retire byrotation."

7. Appointment of Mr. Masaki Morohoshi, as Director liable to retire by rotation

To consider and, if thought fit, to pass with or without modification(s), the following as an Ordinary Resolution:

"RESOLVED THAT pursuant to the provisions of Sections 149, 152 and all other applicable provisions of the CompaniesAct, 2013 and the Rules framed there under (including any statutory modification(s) or re-enactment thereof for the timebeing in force), Mr. Masaki Morohoshi (DIN 07302404), who was appointed by the Board of Directors as an AdditionalDirector of the Company with effect from 23rd March, 2018 and who holds office upto the date of this Annual GeneralMeeting of the Company in terms of Section 161 of the Companies Act, 2013 and in respect of whom the Company hasreceived a Notice in writing from a Member pursuant to Section 160 of the Companies Act, 2013 proposing his candidaturefor the office of Director of the Company, be and is hereby appointed as a Director of the Company, liable to retire byrotation."

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8. Continuation of appointment of Mr. P.K. Nanda as an Independent Director

To consider and, if thought fit, to pass with or without modification(s) the following as a Special Resolution:

"RESOLVED THAT pursuant to the provisions of Sections 149, 152 read with Schedule IV and all other applicableprovisions of the Companies Act, 2013 and the Rules framed there under (including any statutory modification(s) orre-enactment thereof for the time being in force) and pursuant to Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations, 2015 (including any amendment thereof) and pursuant to theResolution passed by the Members at the Annual General Meeting held on 22nd September, 2014, approval of theMembers be and is hereby accorded for continuation of holding of office of Independent Director by Mr. P.K. Nanda(DIN 00751931), who has attained the age of 85 (Eighty-Five) years as on 31st March 2018, upto the expiry of hispresent term of office (i.e. upto 21st September, 2019), on the existing terms and conditions."

9. Continuation of appointment of Mr. A.K. Thakur as an Independent Director


"RESOLVED THAT pursuant to the provisions of Sections 149, 152 read with Schedule IV and all other applicableprovisions of the Companies Act, 2013 and the Rules framed there under (including any statutory modification(s) orre-enactment thereof for the time being in force) and pursuant to Securities and Exchange Board of India (ListingObligations and Disclosure Requirements) Regulations, 2015 (including any amendment thereof) and pursuant to theResolution passed by the Members at the Annual General Meeting held on 22nd September, 2014, approval of theMembers be and is hereby accorded for continuation of holding of office of Independent Director by Mr. A.K. Thakur(DIN 00031778), who has attained the age of 76 (Seventy-Six) years as on 31st March, 2018, upto the expiry of hispresent term of office (i.e. upto 21st September, 2019), on the existing terms and conditions."

10. Approval for payment of minimum remuneration to Mr. Eiichi Seto, Managing Director & CEO, in case of noprofits / inadequate profits


"RESOLVED THAT in accordance with the provisions of Sections 197, 198 read with Schedule V and all other applicableprovisions of the Companies Act, 2013 and the rules made there under (including any statutory modification(s) orre-enactment thereof for the time being in force) and in pursuance of the Resolution passed by the Members at theAnnual General Meeting held on 22nd September, 2014 and subject to the approval of the Central Government, ifrequired, the Members do hereby confirm the following remuneration paid / to be paid as Minimum Remuneration toMr. Eiichi Seto (DIN 02704734), Managing Director & CEO, in case the Company has no profits or its profits areinadequate, during the period commencing from 1st April, 2017 till the remaining tenure of Mr. Eiichi Seto (i.e. upto10th August, 2018).

A) SALARY

Rs. 5,25,000/- per month.

Salary to be increased within the range of Rs. 5,25,000/- per month to Rs. 8,00,000/- per month during the periodof appointment, in such increments, effective 1st April each year, as may be decided by the Board.

B) COMMISSION

1% of net profits subject to a maximum of 100% of annual salary.

C) PERQUISITES AND ALLOWANCES

i) Fully furnished accommodation along with reimbursement for Gas, Electricity and Water.

ii) Medical reimbursement for self and family.

iii) Provision of a car with driver and telephone at residence.

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D) RETIRAL BENEFITS

Contribution to provident fund as applicable to Senior Management of the Company from time to time.

RESOLVED FURTHER THAT the Board be and is hereby authorised to do all acts and take all such steps as maybe necessary, proper or expedient to give effect to this resolution."

11. Approval for payment of minimum remuneration to Mr. Gopal Bansal, Whole-time Director & CFO, in case of noprofits/ inadequate profits


"RESOLVED THAT in accordance with the provisions of Sections 197, 198 read with Schedule V and all other applicableprovisions of the Companies Act, 2013 and the rules made there under (including any statutory modification(s) orre-enactment thereof for the time being in force) and in pursuance of the Resolution passed by the Members at theAnnual General Meeting held on 22nd September, 2014 and subject to the approval of the Central Government, ifrequired, the Members do hereby confirm the following remuneration paid / to be paid as Minimum Remuneration toMr. Gopal Bansal (DIN 06836592), Whole-time Director & CFO, in case the Company has no profits or its profits areinadequate, during the period commencing from 1st April, 2017 till the remaining tenure of Mr. Gopal Bansal (i.e. upto10th February, 2019).

A) SALARY

Basic : Rs. 5,00,000/- per month.

Salary to be increased within the range of Rs. 5,00,000/- per month to Rs.8,00,000/- per month during the period ofappointment, in such increments, effective 1st April each year, as may be decided by the Board.

Special Allowance : Rs.1,50,000/- per month

B) COMMISSION



Perquisites such as House Rent Allowance - 40% of Salary, reimbursement of expenditure incurred on gas,electricity, water, upkeep & maintenance of residence including office at residence, etc., health care for self &wife, fees of two clubs, provision of a car with driver, telephone at residence; leave travel assistance for self andwife subject to a ceiling of one month's salary.

D) RETIRAL AND OTHER BENEFITS

Contribution to provident fund, superannuation scheme, gratuity fund and leaves & encashment of un-availedleaves as applicable to Senior Management from time to time.

RESOLVED FURTHER THAT the Board be and is hereby authorized to do all acts and take all such steps as maybe necessary, proper or expedient to give effect to this resolution."

12. Appointment of Mr. Yugo Hashimoto as Director


"RESOLVED THAT pursuant to the provisions of Sections 149, 152 and all other applicable provisions of the CompaniesAct, 2013 and the Rules framed there under (including any statutory modification(s) or re-enactment thereof for the timebeing in force), Mr. Yugo Hashimoto (DIN 08165797), who was appointed by the Board of Directors as an AdditionalDirector of the Company with effect from 9th August, 2018 and who holds office upto the date of this Annual GeneralMeeting of the Company in terms of Section 161 of the Companies Act, 2013 and in respect of whom the Company hasreceived a Notice in writing from a Member pursuant to Section 160 of the Companies Act, 2013 proposing his candidaturefor the office of Director of the Company, be and is hereby appointed as Director of the Company, not liable to retire byrotation."

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13. Appointment of Mr. Yugo Hashimoto as Managing Director & Chief Executive Officer


"RESOLVED THAT in accordance with the provisions of Sections 196, 197 read with Schedule V and all other applicableprovisions of the Companies Act, 2013 and the rules made there under (including any statutory modification(s) orre-enactment thereof for the time being in force) and subject to the requisite approval of Central Government, if required,approval of the Members be and is hereby accorded for the appointment of Mr. Yugo Hashimoto (DIN 08165797), asManaging Director & Chief Executive Officer of the Company, for a period five (5) years with effect from 10th August,2018, on the terms & conditions as mentioned below :

A) SALARY

Rs. 5,25,000/- per month.

Salary to be increased within the range of Rs. 5,25,000/- per month to Rs. 8,00,000/- per month during the periodof appointment, in such increments, effective 1st April each year, as may be decided by the Board.

B) COMMISSION



i) Fully furnished accommodation along with reimbursement for Gas, Electricity and Water.

ii) Medical reimbursement for self and family during stay in India.

iii) Provision of a car with driver and telephone facility.

D) RETIRAL BENEFITS

Contribution to provident fund as per prevailing law.

RESOLVED FURTHER THAT the Board be and is hereby authorised to alter and vary the terms and conditions ofappointment and / or remuneration, subject to the same not exceeding the limits specified under Section 197 of theCompanies Act, 2013 including any statutory modification(s) or re-enactment thereof.

RESOLVED FURTHER THAT where in any financial year during the tenure of Mr. Yugo Hashimoto, the Companyhas no profits or its profits are inadequate, the Company may pay to Mr. Yugo Hashimoto, the above remunerationas the minimum remuneration for a period not exceeding three years from the date of appointment by way ofsalary, perquisites and other allowances and benefits as specified above subject to receipt of the requisite approvals,if any.

RESOLVED FURTHER THAT the Board be and is hereby authorised to do all acts and take all such steps as maybe necessary, proper or expedient to give effect to this resolution."

14. Alteration of Memorandum of Association of the Company


"RESOLVED THAT pursuant to the provisions of Sections 4,13 and all other applicable provisions of the CompaniesAct, 2013 and the Rules framed there under (including any statutory modification(s) or re-enactment thereof for the timebeing in force), and subject to the necessary approval(s) required under other applicable laws and regulations, if any,consent of the Members be and is hereby accorded to alter the Memorandum of Association of the Company to align thesame with the provisions of the Companies Act, 2013 and Rules made thereunder.

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RESOLVED FURTHER THAT the heading of existing Clause III A, "MAIN OBJECTS OF THE COMPANY TO BEPURSUED ON ITS INCORPORATION: " be and is hereby substituted with the heading "THE OBJECTS TO BE PURSUEDBY THE COMPANY ON ITS INCORPORATION ARE:"

RESOLVED FURTHER THAT the heading of existing Clause III B, "OBJECTS INCIDENTAL OR ANCILLARY TO THEATTAINMENT OF THE MAIN OBJECTS: "be and is hereby substituted with the heading "MATTERS WHICH ARENECESSARY FOR FURTHERANCE OF THE OBJECTS SPECIFIED IN CLAUSE III A ARE:"

RESOLVED FURTHER THAT the heading of existing Clause III C "OTHER OBJECTS" of the Memorandum of Associationof the Company be and is hereby deleted and further altered by renumbering the existing clause 1 to 16 as 40 to 55 whichwill be incorporated under Clause III B.

RESOLVED FURTHER THAT the existing Clause IV of the Memorandum of Association of the Company be and ishereby deleted.

RESOLVED FURTHER THAT the existing Clause V of Memorandum of Association of the Company be and is herebyrenumbered as Clause IV and substituted with the new Clause to be read as:

"The liability of members is limited and this liability is limited to the amount unpaid, if any, on the shares held by them."

RESOLVED FURTHER THAT the existing Clause VI and Clause VII of the Memorandum of Association of the Companybe and are hereby renumbered as Clause V and Clause VI respectively.

RESOLVED FURTHER THAT the words ‘Companies Act, 1956’ in the existing Memorandum of Association shall besubstituted with the words ‘Companies Act, 2013’, wherever required and reference to various sections of the CompaniesAct, 1956 in the existing Memorandum of Association, be replaced with the corresponding sections of the CompaniesAct, 2013.

RESOLVED FURTHER THAT the Board be and is hereby authorised to do all acts and take all such steps as may benecessary, proper or expedient to give effect to this resolution."

15. Adoption of new Articles of Association of the Company


"RESOLVED THAT pursuant to the provisions of Sections 5, 14 and all other applicable provisions of the CompaniesAct, 2013 and the Rules framed there under (including any statutory modification(s) or re-enactment thereof for the timebeing in force), and subject to the necessary approval(s) required under other applicable laws and regulations, if any, theconsent of the Members be and is hereby accorded to approve and adopt the draft regulations contained in the Articlesof Association of the Company submitted to this meeting in substitution, and in entire exclusion, of the regulationscontained in the existing Articles of Association of the Company.

RESOLVED FURTHER THAT the Board be and is hereby authorised to do all acts and take all such steps as may benecessary, proper or expedient to give effect to this resolution."

NOTES:

1. An Explanatory Statement as required under Section 102 of the Companies Act, 2013 is annexed hereto.

2. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TOATTEND AND VOTE INSTEAD OF HIMSELF / HERSELF AND THE PROXY NEED NOT BE A MEMBER OF THECOMPANY.

A person can act as proxy on behalf of members not exceeding fifty and holding in the aggregate not more than tenpercent of the total share capital of the Company carrying voting rights. A member holding more than ten percent of thetotal share capital of the Company carrying voting rights may appoint a single person as proxy and such person shall notact as a proxy for any other person or shareholder.

The instrument appointing a Proxy, duly completed and signed, must be deposited with the Company at its RegisteredOffice not later than 48 hours before the scheduled time for holding the Meeting.

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Every member entitled to vote at the Meeting or on any resolution to be moved there at shall be entitled during the periodbeginning 24 hours before the time fixed for the commencement of the Meeting and ending with the conclusion of theMeeting, to inspect the proxies lodged, at any time during the business hours of the Company, provided that not lessthan three days' notice in writing of the intention so to inspect is given to the Company.

3. Corporate members intending to send their authorised representatives to attend the Meeting are requested to send to theCompany a certified copy of the Board Resolution authorising their representatives to attend and vote on their behalf atthe Meeting.

4. Members/Proxies/Authorised Representatives are requested to produce the Attendance slip duly signed, dated andstamped for admission to the Meeting Hall.

5. In case of joint holders attending the Meeting, only such joint holder who is higher in the order of names will be entitledto vote.

6. The Company's Registrar and Share Transfer Agent for its Share Registry Work (Physical and Electronic) areM/s MCS Share Transfer Agent Limited having their office at F-65, Okhla Industrial Area, Phase-1, New Delhi - 110020.

7. The Register of Members and Transfer Books of the Company will be closed from 3rd August, 2018 to 9th August, 2018(both days inclusive) for the purpose of Annual General Meeting and payment of dividend for the FY ended31st March, 2018.

8. The dividend, as recommended by the Board, if approved at the Annual General Meeting, would be paid / dispatched onor before 24th August, 2018, to those shareholders:

(a) whose names appear as Beneficial Owners as at the end of the business hours on 2nd August, 2018 in the list ofBeneficial Owners to be furnished by National Securities Depository Limited and Central Depository Services(India) Limited in respect of the shares held in electronic mode; and

(b) whose names appear as Members in the Register of Members of the Company after giving effect to valid sharetransfers in physical form lodged with the Company / its Registrar and Share Transfer Agents on or before2nd August, 2018.

9. The Register of Directors & Key Managerial Personnel and Register of contracts or arrangements in which Directors areinterested shall be available at the Annual General Meeting and accessible during the continuance of the Meeting to anyperson having the right to attend the Meeting.

10. Members desirous of obtaining any information concerning the accounts and operations of the Company are requestedto address their questions in writing to the Company Secretary of the Company at least 5 days before the date of theMeeting so that information required may be compiled and made available at the Meeting.

11. Notice of Annual General Meeting, Audited Financial Statements for the year ended 31st March, 2018 together withReport of Directors and Auditors' Report are also available on the website of the Company www.smlisuzu.com.

12. Transfer of unpaid dividend and shares to Investor Education and Protection Fund (IEPF)

(a) The Company has transferred unclaimed dividends for and upto the financial year ended 31st March, 2010 to theInvestor Education and Protection Fund (IEPF). Members who have not encashed the dividend warrant(s) fromfinancial year 2010-11 onwards, are requested to make their claims to the Company. It may be noted that once theamounts in the unpaid dividend accounts are transferred to the IEPF, no claim shall lie against the Company inrespect thereof. The Company has uploaded the information of unclaimed / unpaid dividend lying with the Companyas on 22nd September, 2017 (date of last Annual General Meeting) on the website of the Company(www.smlisuzu.com).

(b) Pursuant to Rule 6 of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund)Rules, 2016 read with Section 124 of the Companies Act, 2013, all the shares in respect of which dividend has notbeen claimed by the shareholder for a period of seven (7) consecutive years or more, shall be transferred toInvestor Education and Protection Fund (IEPF). Upon transfer of such shares, all corporate benefits accruing onsuch shares shall also be credited to the IEPF and the Voting Rights on such shares shall remain frozen till therightful owner claims the shares.

http://www.smlisuzu.com.

http://www.smlisuzu.com).

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The Company, after giving required Notice(s), has transferred all shares in respect of which dividend for thefinancial years 2008-09 and 2009-10 has remained unclaimed/unpaid for seven (7) consecutive years or more, tothe IEPF Authority. Details of shares transferred to IEPF are available on the Company's website(www.smlisuzu.com).

Further, the Company has also initiated necessary action for transfer of shares in respect of which dividenddeclared for the financial year 2010-11 has not been claimed by the members for seven (7) consecutive years ormore. Intimations have been sent to the concerned shareholders through individual notices and also advertised inthe Newspapers requesting them to en-cash their unclaimed dividends (by 12th September, 2018) failing which thecorresponding shares shall be transferred to IEPF without further notice. The list of concerned Shareholders andthe corresponding shares are available on the Company's website www.smlisuzu.com.

However, Members can claim unpaid dividend as well as shares from IEPF Authority by making an application inForm IEPF-5 online on www.iepf.gov.in and sending the physical copy of the same duly signed (as per registeredspecimen signature) along with requisite documents, enumerated in the said Form IEPF-5, to the Company or toM/s MCS Share Transfer Agent Limited, Registrar and Transfer Agents of the Company for verification of claim.Member can file only one consolidated claim in a financial year as per the IEPF Rules.

13. SEBI, vide its notification dated 8th June, 2018, has prescribed that securities of l isted companies can betransferred only in dematerialized form. Accordingly, Members holding shares in physical form are requestedto convert their holding(s) in dematerialized form.

14. Members can avail the facility of nomination in respect of shares held by them in physical form pursuant to the provisionsof Section 72 of the Companies Act, 2013. Members desiring to avail this facility may send their nomination to Company'sRegistrar and Share Transfer Agent, M/s MCS Share Transfer Agent Limited, in the prescribed Form SH-13, which isavailable on the website of the Company (www.smlisuzu.com). Members holding shares in electronic mode may contacttheir respective Depository Participants for availing this facility.

15. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account Number(PAN) by every participant in securities market. Members holding shares in electronic form are, therefore, requested tosubmit their PAN to their Depository Participants with whom they are maintaining their demat accounts. Membersholding shares in physical form should submit their PAN to the Company / Registrar.

16. Members are requested to:

i. Intimate their latest bank account details viz. name and address of the branch of the bank with 9 digit MICR codeof the branch & 11 digit IFSC code, type of account and account number, to the respective depository participantin case shares are held in demat mode and to the Company's Registrar and Share Transfer Agent, M/s MCS ShareTransfer Agent Limited, in case shares are held in physical mode for payment of dividend through ECS / toincorporate this information on the dividend warrants and thus prevent fraudulent encashment of the warrants.

ii. Intimate changes, if any, pertaining to their registered addresses, e-mail address, telephone/mobile numbers,nomination, power of attorney etc. to their respective depository participant in case shares are held in demat modeand to the Company's Registrar and Share Transfer Agent, M/s MCS Share Transfer Agent Limited, in case sharesare held in physical mode.

iii. Quote their folio numbers/Client ID/ DP ID in all correspondence.

iv. Consolidate their holdings into one folio in case they hold shares under multiple folios in the identical order of names.

17. For receiving all shareholder communications faster in future, including annual reports, the shareholders are requestedto kindly register / update their e-mail address with their respective Depository Participant, where shares are held inelectronic mode. If, shares are held in physical form, shareholders are advised to register their e-mail address withCompany's Registrar and Share Transfer Agent, M/s MCS Share Transfer Agent Limited or the same may be registeredat the Company's website www.smlisuzu.com.



http://www.iepf.gov.in



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18. Voting through electronic means :

I. In compliance with provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of The Companies(Management and Administration) Rules, 2014, and SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015, the Company is pleased to provide the facility to its Members to exercise their right to vote byelectronic means (remote e-voting) in respect of the resolutions contained in this Notice. For this, the Companyhas engaged the services of National Securities Depository Limited (NSDL) as the Authorized Agency to providee-voting facilities.

"Remote e-voting" means the facility of casting votes by a Member using an electronic voting system from a placeother than venue of general meeting.

The "cut-off" date for determining the eligibility for voting either through electronic voting system or ballot paper isfixed as 2nd August, 2018.

The instructions for e-voting are as under:

Step 1 : Log-in to NSDL e-Voting system at https://www.evoting.nsdl.com/

Step 2 : Cast your vote electronically on NSDL e-Voting system.

Details on Step 1 is mentioned below:

How to Log-in to NSDL e-Voting website?

1. Visit the e-Voting website of NSDL. Open web browser by typing the followingURL: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile.

2. Once the home page of e-Voting system is launched, click on the icon "Login" which is available under'Shareholders' section.

3. A new screen will open. You will have to enter your User ID, your Password and a Verification Code as shownon the screen.

Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/with your existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, clickon e-Voting and you can proceed to Step 2 i.e. Cast your vote electronically.

4. Your User ID details are given below :

Manner of holding shares i.e. Demat Your User ID is:(NSDL or CDSL) or Physical

a) For Members who hold shares in demat 8 Character DP ID followed by 8 Digit Client IDaccount with NSDL. For example if your DP ID is IN300*** and Client ID

is 12****** then your user ID is IN300***12******.

b) For Members who hold shares in demat 16 Digit Beneficiary IDaccount with CDSL. For example if your Beneficiary ID is 12**************

then your user ID is 12**************

c) For Members holding shares in EVEN Number followed by Folio Number registeredPhysical Form. with the company

For example if folio number is 001*** and EVEN is101456 then user ID is 101456001***

https://www.evoting.nsdl.com/

https://www.evoting.nsdl.com/

https://eservices.nsdl.com/

130130

5. Your password details are given below:

a) If you are already registered for e-Voting, then you can use your existing password to login and cast yourvote.

b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the 'initial password' whichwas communicated to you. Once you retrieve your 'initial password', you need to enter the 'initial password'and the system will force you to change your password.

c) How to retrieve your 'initial password'?

i) If your email ID is registered in your demat account or with the Company, your 'initial password' iscommunicated to you on your email ID. Trace the email sent to you from NSDL from your mailbox.Open the email and open the attachment i.e. a .pdf file. Open the .pdf file. The password to open the.pdf file is your 8 digit client ID for NSDL account, last 8 digits of client ID for CDSL account or folionumber for shares held in physical form. The .pdf file contains your 'User ID' and your 'initial password'.

ii) If your email ID is not registered, your 'initial password' is communicated to you on your postal address.

6. If you are unable to retrieve or have not received the "Initial password" or have forgotten your password:

i) Click on "Forgot User Details/Password?" (If you are holding shares in your demat account with NSDL orCDSL) option available on www.evoting.nsdl.com.

ii) Physical User Reset Password?" (If you are holding shares in physical mode) option available onwww.evoting.nsdl.com.

iii) If you are still unable to get the password by aforesaid two options, you can send a request at [email protected] your demat account number/folio number, your PAN, your name and your registered address.

7. After entering your password, tick on Agree to "Terms and Conditions" by selecting on the check box.

8. Now, you will have to click on "Login" button.

9. After you click on the "Login" button, Home page of e-Voting will open.

Details on Step 2 is given below:

How to cast your vote electronically on NSDL e-voting system?

1. After successful login at Step 1, you will be able to see the Home page of e-Voting. Click on e-Voting. Then, clickon Active Voting Cycles.

2. After click on Active Voting Cycles, you will be able to see all the companies "EVEN" in which you are holdingshares and whose voting cycle is in active status.

3. Select "EVEN" (E-Voting Event Number - 108484) of SML Isuzu Limited.

4. Now you are ready for e-Voting as the Voting page opens.

5. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/ modify the number of shares forwhich you wish to cast your vote and click on "Submit" and also "Confirm" when prompted.

6. Upon confirmation, the message "Vote cast successfully" will be displayed.

7. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.

8. Once you confirm your vote on the resolution(s), you will not be allowed to modify your vote.

http://www.evoting.nsdl.com.



131

General Guidelines for shareholders

1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/ JPGFormat) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorizedsignatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to [email protected] with a copy markedto [email protected].

2. It is strongly recommended not to share your password with any other person and take utmost care to keep yourpassword confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in thecorrect password. In such an event, you will need to go through the "Forgot User Details/Password?" or "PhysicalUser Reset Password?" option available on www.evoting.nsdl.com to reset the password.

II. In case of any queries, you may refer to the 'Frequently Asked Questions' (FAQs) for Shareholders and e-votinguser manual for Shareholders available at the Downloads section of NSDL's E-Voting website www.evoting.nsdl.com.You can also send your queries / grievances relating to e-voting to:-

a. Name and Designation: Ms. Pallavi Mhatre, Assistant Manager

b. Address: Trade World, 'A' Wing, 4th Floor, Kamala Mills Compound, SenapatiBapat Marg, Lower Parel, Mumbai - 400 013

c. Email Id : [email protected]

d. Phone Number(s) : +91 22 24994545

e. Toll free No: 1800-222-990

III. You can also update your mobile number and e-mail id in the user profile details of the folio which may be used forsending future communication(s).

IV. The e-voting period commences on 5th August, 2018 (9:00 AM) and ends on 8th August, 2018 (5:00 PM). Duringthis period, shareholders' of the Company, holding shares either in physical form or in dematerialized form, as onthe cut-off date, the 2nd August, 2018, may cast their vote electronically.

The e-voting module shall be disabled by NSDL for voting thereafter. Once the vote on a resolution is cast by theshareholder, the shareholder shall not be allowed to change it subsequently or cast the vote again.

V. The facility for voting through ballot paper will also be made available at the Meeting and shareholders attendingthe Meeting who have not already cast their vote by remote e-voting will be able to exercise their right at theMeeting.

VI. The shareholders who have cast their vote by remote e-voting may also attend the Meeting but shall not be entitledto cast their vote at the Meeting.

VII. The voting rights of shareholders shall be in proportion to their shares of the paid up equity share capital of theCompany as on the cut-off date, 2nd August, 2018.

VIII. A person who is not a Member as on the cut-off date should treat this Notice for information purposes only.

IX. Any person, who acquires shares of the Company and become shareholder of the Company after dispatch of theNotice and holding shares as on the cut-off date i.e 2nd August, 2018, may obtain the Login ID and password bysending a request at [email protected] or RTA at [email protected].

If the shareholder is already registered with NSDL for e-voting then he can use his existing User ID and passwordfor casting the vote through remote e-voting.

X. Mr. Kanwaljit Singh Thanewal, a practicing Company Secretary (Membership No. F-5901) has been appointed bythe Board of Directors of the Company as the Scrutinizer to scrutinize the remote e-voting process and voting atAnnual General Meeting in a fair and transparent manner.


mailto:[email protected].

http://www.evoting.nsdl.com




mailto:[email protected].

132132

XI. The Scrutinizer shall immediately after the conclusion of voting at the Annual General Meeting, first count theVotes cast at the Meeting, thereafter unblock the votes cast through remote e-voting in the presence of at leasttwo witnesses, not in the employment of the Company, and make a consolidated Scrutinizer's Report of the totalvotes cast in favour or against, if any, to the Chairman or a person authorized by the Board who shall countersignthe same.

XII. The voting results shall be forwarded to BSE Limited and National Stock Exchange of India Limited, where theshares of the Company are listed, within 48 hours of the conclusion of the Annual General Meeting. The resultsdeclared along with the Scrutinizer's Report shall also be placed on the Company's website www.smlisuzu.comand on the website of NSDL.

XIII. The resolutions shall be deemed to be passed on the date of the Annual General Meeting i.e. 9th August, 2018subject to receipt of the requisite number of votes in favour of the resolutions.

19. The requirement to place the matter relating to appointment of Auditor for ratification by members at every AnnualGeneral Meeting is done away with vide notification dated 7th May, 2018 issued by the Ministry of Corporate Affairs.Accordingly, no resolution is proposed for ratification of appointment of Statutory Auditors. However, approval of theMembers is being sought to authorize Board of Directors to fix the remuneration payable to the statutory auditors for theremaining tenure.

20. Additional information, pursuant to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 andSecretarial Standard on General Meetings issued by the Institute of Company Secretaries of India, in respect of theDirectors seeking appointment / re-appointment, is annexed as Annexure A.

21. The route map of the venue of the Meeting is attached to this Notice. The prominent landmark for the venue is that it isopposite to Gurudwara Tibbi Sahib (approx. 2 km from Ropar New Bus Stand).

Regd. Office & Works : By Order of the Board

Village Asron, for SML ISUZU LIMITED

Distt. Shahid Bhagat Singh Nagar(Nawanshahr), Punjab-144 533Email:[email protected] (PARVESH MADAN)CIN : L50101PB1983PLC005516 Company SecretaryWebsite : www.smlisuzu.com ACS-31266

Dated: 30th June, 2018


mailto:Email:[email protected]


133

Explanatory Statement pursuant to Section 102 of the Companies Act, 2013

Item No. 6

Mr. Gota Iwanami was appointed by the Board, on the recommendation of its Nomination & Remuneration Committee, as anAdditional Director with effect from 23rd March, 2018. He holds office upto the date of the ensuing Annual General Meeting ofthe Company pursuant to Section 161 of the Companies Act, 2013 ("the Act").

Mr. Iwanami is a Graduate from Keio University, Japan. He joined Sumitomo Corporation, Japan in April 1988 and is currentlyGeneral Manager, Automotive Sales & Marketing Business Division. He has over 30 years of rich global experience in theAutomotive Business.

The Company has received a Notice in writing from a Member in the prescribed manner, under Section 160 of the Act, asamended, proposing the candidature of Mr. Gota Iwanami for the office of Director of the Company, liable to retire by rotation.

Mr. Iwanami is not disqualified from being appointed as a Director in terms of Section 164 of the Act and has given his consentin writing to act as a Director of the Company.

Disclosure under applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and theSecretarial Standard on General Meetings has been annexed hereto and marked as Annexure A.

It is the considered view of the Board that Mr. Iwanami's knowledge and experience will be of immense value to the Company.Accordingly, the Board recommends the Ordinary Resolution set out at Item No. 6 of the Notice for the approval of theMembers.

Except for Mr. Iwanami, none of the other Directors, Key Managerial Personnel of the Company and their relatives are, in anyway, concerned or interested, financially or otherwise, in the Resolution set out at Item No. 6.

The relevant documents related to this item are available for inspection on all working days from 11:00 AM to 3:00 PM at theRegistered Office of the Company and copies thereof are available for inspection at the Corporate Office of the Company andwill also be available during the Meeting.

Item No. 7

Mr. Masaki Morohoshi was appointed by the Board, on the recommendation of its Nomination & Remuneration Committee, asan Additional Director with effect from 23rd March, 2018. He holds office upto the date of the ensuing Annual General Meetingof the Company pursuant to Section 161 of the Companies Act, 2013 ("the Act").

Mr. Morohoshi is a graduate from Waseda University, Japan. He joined Sumitomo Corporation, Japan in April 1987 and hislast position in Sumitomo was General Manager, Automotive Steel Sheet Products Business Department 1. Currently he isChairman & Managing Director of Sumitomo Corporation India Pvt. Ltd. He has over 30 years of rich global experience in theAutomotive Business.

The Company has received a Notice in writing from a Member in the prescribed manner, under Section 160 of the Act, asamended, proposing the candidature of Mr. Masaki Morohoshi for the office of Director of the Company, liable to retire byrotation.

Mr. Morohoshi is not disqualified from being appointed as a Director in terms of Section 164 of the Act and has given hisconsent in writing to act as a Director of the Company.

Disclosure under applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and theSecretarial Standard on General Meetings has been annexed hereto and marked as Annexure A.

It is the considered view of the Board that Mr. Morohoshi's knowledge and experience will be of immense value to theCompany. Accordingly, the Board recommends the Ordinary Resolution set out at Item No. 7 of the Notice for the approval ofthe Members.

134134

Except for Mr. Morohoshi, none of the other Directors, Key Managerial Personnel of the Company and their relatives are, inany way, concerned or interested, financially or otherwise, in the Resolution set out at Item No. 7.


Item No. 8 & 9

Members of the Company, at the Annual General Meeting, held on 22nd September, 2014, had approved the appointment ofMr. P.K. Nanda and Mr. A.K. Thakur as an Independent Directors, for a period of five years with effect from22nd September, 2014.

The Securities and Exchange Board of India ('SEBI') has amended SEBI (Listing Obligations and Disclosure Requirements)Regulations, 2015 which mandates that, effective 1st April, 2019, no listed entity shall appoint a person or continue thedirectorship of any person as a non-executive director who has attained the age of 75 years unless approval of Members hasbeen obtained through a special resolution. Presently, Company's two Non-Executive Directors namely - Mr. P.K. Nanda &Mr. A.K. Thakur, have already attained age of 75 years. Accordingly, approval of Members, by way of special resolutions, isbeing sought to continue them as Directors on the Board of the Company.

Keeping in view the vast experience & knowledge of Mr. P.K. Nanda and Mr. A.K. Thakur and their continued ability to makevaluable contributions to the growth of the Company, the Board strongly feels that their continued association would be ofimmense benefit to the Company and recommends the Special Resolutions set out at Item No. 8 & 9 of the Notice for theapproval of the Members.

Disclosure under applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 andSecretarial Standards on General Meetings has been annexed hereto and marked as Annexure A.

Except for Mr. Nanda and Mr. Thakur, none of the other Directors, Key Managerial Personnel of the Company and theirrelatives are, in any way, concerned or interested, financially or otherwise, in the Resolutions set out at Item No. 8 & 9.


Item No. 10 & 11

Members of the Company, at the Annual General Meeting, held on 22nd September, 2014, had approved the appointment ofMr. Eiichi Seto as Managing Director & CEO and Mr. Gopal Bansal as Whole-time Director & CFO, for a period of five yearseffective 26th December, 2013 and 11th February, 2014 respectively, including remuneration payable to them. Members hadalso approved payment of Minimum Remuneration to Mr. Seto and Mr. Bansal, in case there are no profits or profits areinadequate, in terms of the provisions of the Companies Act 2013, for a period of three years from the date of appointment. Itis pertinent to mention here that period of three years approved for payment of minimum remuneration was in terms of theapplicable provisions of the Companies Act. Accordingly, the resolutions set out at Item No 10 & 11 of the Notice areproposed to cover the remaining tenure of Mr. Seto and Mr. Bansal for payment of Minimum Remuneration in case there areno profits or profits are inadequate.

Members may kindly note that for FY 2017-18, the Company has inadequate profits to cover the managerial remuneration.Reasons for inadequate profits have been explained in Statement as required under Schedule V (Annexure B), which formspart of the Notice.

Schedule V of the Companies Act, 2013, permits payment of Minimum Remuneration, upto the ceiling limits specified in thesaid Schedule, to a managerial person during a financial year, in case of no profits / inadequate profits with approval of theMembers of the Company.

135

Considering the valuable contributions made by Mr. Eiichi Seto and Mr. Gopal Bansal, over the past years for the growth ofthe Company, the Board on the recommendation of its Nomination and Remuneration Committee, has unanimously approvedthe payment of Minimum Remuneration (as specified in the respective resolutions) for Mr. Eiichi Seto and Mr. Gopal Bansalin case there are no profits or profits are inadequate during the period commencing from 1st April, 2017 till their remainingtenure.

The Board of Directors strongly recommends the Special Resolutions set out at Item No. 10 & 11 of the Notice for theapproval of the Members.


Statement as required under Schedule V of the Companies Act, 2013 with reference to Resolution at Item No. 10 & 11 hasbeen annexed hereto and marked as Annexure B.

Except for Mr. Eiichi Seto and Mr. Gopal Bansal, none of the other Directors, Key Managerial Personnel of the Company andtheir relatives are, in any way, concerned or interested, financially or otherwise, in the Resolutions as set out atItem No. 10 & 11 respectively.

Item No. 12 & 13

Mr. Yugo Hashimoto was appointed by the Board, on the recommendation of its Nomination & Remuneration Committee, asan Additional Director with effect from 9th August, 2018. He holds office upto the date of the ensuing Annual General Meetingof the Company pursuant to Section 161 of the Companies Act, 2013 ("the Act").

Mr. Yugo Hashimoto is a graduate from Waseda University, Japan. He joined Sumitomo Corporation, Japan in April, 1984 andsince then has held several positions in various departments including Motor Vehicles Dept. Before moving to India, he wasPresident of Sumitomo Corporation de Mexico S.A. de C.V. and President of Japanese Chamber of Commerce in Mexico. Hehas 34 years of rich global experience in the Automotive Business.

The Company has received a Notice in writing from a Member in the prescribed manner, under Section 160 of the Act, asamended, proposing the candidature of Mr. Yugo Hashimoto for the office of Director of the Company, not liable to retire byrotation.

Mr. Hashimoto is not disqualified from being appointed as a Director in terms of Section 164 of the Act and has given hisconsent in writing to act as a Director of the Company.

Further, on the recommendation of its Nomination & Remuneration Committee, the Board appointed Mr. Yugo Hashimoto asManaging Director & CEO of the Company for a period of five (5) years with effect from 10th August, 2018 subject to approvalof the Members in the Annual General Meeting.

The Notice read with Explanatory Statement should be considered as written Memorandum setting out the terms of appointmentof Mr. Yugo Hashimoto as required under Section 190 of the Companies Act, 2013.


Statement as required under Schedule V of the Companies Act, 2013 with reference to Resolution at Item No. 13 has beenannexed hereto and marked as Annexure B.

It is the considered view of the Board that Mr. Hashimoto's knowledge and experience will be of immense value to theCompany. Accordingly, the Board recommends the Resolutions at Item No. 12 of the Notice as an Ordinary Resolution and atItem No. 13 of the Notice as a Special Resolution.

Except for Mr. Yugo Hashimoto, none of the other Directors, Key Managerial Personnel of the Company and their relativesare, in any way, concerned or interested, financially or otherwise, in the Resolutions set out at Item No. 12 & 13.

136136

The relevant documents related to these items are available for inspection on all working days from 11:00 AM to 3:00 PM atthe Registered Office of the Company and copies thereof are available for inspection at the Corporate Office of the Companyand will also be available during the Meeting.

Item No. 14

Memorandum of Association (MOA) of the Company, as currently in force, was originally adopted when the Company wasincorporated under the Companies Act, 1956 (the old Act). With the enactment of new Companies Act 2013 (the new Act), asamended from time to time, it is proposed to alter/amend the existing MOA to be in accordance with the requirements of the newAct.

In terms of Section 4(1)(c) of the Act, the MOA is to state the objects for which the Company is proposed to be incorporatedand any matter considered necessary in furtherance thereof. To align with this provision, it is proposed to replace the existingheadlines of Clause III A & III B respectively and delete Clause III C and renumbering of the clauses accordingly.

Further, it is proposed to delete the existing Clause IV of the Memorandum of Association of the Company as it is no morerequired and renumber the existing Clause V, Clause VI and Clause VII accordingly.

In terms of Section 4(1)(d) of the Act, the MOA is to state, in the case of a Company limited by shares, that liability ofMembers is limited to the amount unpaid, if any, on the shares held by them. Accordingly it is proposed to amend the existingClause V (renumbered as Clause IV) of MOA so as to comply with the provisions of the new Act.

Pursuant to the provisions of Section 13 of the Companies Act, 2013, read with the rules framed there under, alteration ofMOA requires approval of shareholders by way of a Special Resolution. Accordingly, the Board recommends the SpecialResolution as set out at Item No. 14 of the Notice for the approval of the Members.

None of the Directors, Key Managerial Personnel of the Company and their relatives are, in any way, concerned or interested,financially or otherwise, in the Resolution set out at Item No. 14.

The proposed new draft MOA is being uploaded on the Company's website (www.smlisuzu.com) for perusal by the Members.

The relevant documents related to this item including proposed draft MOA of the Company are available for inspection on allworking days from 11:00 AM to 3:00 PM at the Registered Office of the Company and copies thereof are available forinspection at the Corporate Office of the Company and will also be available during the Meeting.

Item No. 15

Existing Articles of Association (AOA) of the Company is in accordance with the Companies Act, 1956 (the old Act) and assuch several regulations contain references to the specific sections of the old Act. Moreover, some regulations are no longerin conformity with the Companies Act, 2013 (the new Act).

In order to bring the existing AOA of the Company in line with the provisions of the new Act, the Company will have to makenumerous changes in the existing AOA. It is therefore considered appropriate to adopt a comprehensive new set of Articlesof Association of the Company in substitution of and in entire exclusion of the regulations contained in the existing AOA.

Pursuant to the provisions of Section 14 of the Companies Act, 2013, read with the rules framed there under, amendment ofAOA requires approval of shareholders by way of a Special Resolution. Accordingly, the Board recommends the SpecialResolution as set out at Item No. 15 of the Notice for the approval of the Members.

None of the Directors, Key Managerial Personnel of the Company and their relatives are, in any way, concerned or interested,financially or otherwise, in the Resolution set out at Item No. 15.

The proposed new draft AOA is being uploaded on the Company's website (www.smlisuzu.com) for perusal by the Members.

The relevant documents related to this item including proposed draft AOA of the Company are available for inspection on allworking days from 11:00 AM to 3:00 PM at the Registered Office of the Company and copies thereof are available forinspection at the Corporate Office of the Company and will also be available during the Meeting.

http://www.smlisuzu.com)

http://www.smlisuzu.com)

137

Annexure A

Additional Information required to be given as per SEBI Listing Regulations and Secretarial Standard on GeneralMeetings issued by the Institute of Company Secretaries of India, is given below :

Name of the Director

Date of Birth (Age)

DIN No.

Original Date of Appointment

Qualification(s)

Experience (including expertisein specific functional area)

Takeru Kikkawa

28.10.1960 (57 years)

03107280

10.05.2016

Graduate from Keio University,Japan

Mr. Kikkawa is a Non-executiveDirector on SML Board. He joinedSumitomo Corporation, Japan inApril, 1983 and since then has heldseveral posit ions in variousdepartments including MotorVehicles Department andAutomot ive ManufacturingBusiness Department and iscurrently General Manager,Automot ive ManufacturingBusiness Department1. Mr. Kikkawa has around 35 yearsof rich global experience in theautomotive business.

Pankaj Bajaj

07.12.1971 (46 years)

00337925

29.07.2006

LLB, Execut ive ManagementProgram, FCA, ACS, ACMA

Mr. Bajaj is a Non-executive Directoron SML Board. He started his careerin 1995 with Deloitte Haskins &Sells. He joined SumitomoCorporation India Private Limited in1997 as Company Secretary. Hecurrently holds the post of Directorand Company Secretary. He handlesRisk Management, Legal &Regulatory, Taxation and otherdiversified corporate departmentresponsibilities for the Companywhich operates across a spectrumof sectors including Automobiles,Infrastructure, Chemicals and Metals.

Mr. Bajaj has around 23 years of richexperience in areas such ascorporate planning, investment,legal and secretarial matters,corporate finance, risk management,taxation and internal controls.

Gota Iwanami

31.07.1964 (53 yrs)

08094102

23.03.2018

Graduate from Keio University,Japan

Mr. Iwanami was appointed as anAdditional Director on 23rd March,2018 on SML Board.

He joined Sumitomo Corporation,Japan in April 1988 and since thenhas held several positions(indifferent countries) in variousdepartments including MotorVehicles Department and Sales &Marketing Department. He iscurrently General Manager,Automotive Sales & MarketingBusiness Division.

Mr. Iwanami has over 30 years ofrich global experience in theautomotive business.

Masaki Morohoshi

06.04.1963 (55 yrs)

07302404

23.03.2018

Graduate from Waseda University,Japan

Mr. Morohoshi was appointed as anAdditional Director on 23rd March,2018 on SML Board.

Mr. Morohoshi joined SumitomoCorporation, Japan in April 1987 andsince then has held severalpositions (in different countries) invarious departments including MotorVehicles and Steel SheetDepartment. Before moving to India,he was General Manager,Automotive Steel Sheet ProductsBusiness Department 1. Currently,he is the Chairman & ManagingDirector of Sumitomo CorporationIndia Pvt. Limited.

Mr. Morohoshi has over 30 years ofrich global experience in theautomotive business.

P K Nanda

28.09.1932(85 yrs)

00751931

29.07.2006

B.Com, FCA, FCS

Mr. Nanda has held several topmanagerial posit ions withcompanies both in India and abroad:executive positions in RemingtonRand, Philips India, ITC, and then atMetal Box India, where he wasappointed Chairman and ManagingDirector. He was then transferred toUK as a Director of the Group Boardand Chairman of its InternationalOperations. He was non-executiveChairman of Bata India Limited andthen on the Board of BataInternational Organisation.

He was the 'founder president' ofConfederation of Indian Industry (CII)and has also served as a member ofGovernment appointed committees,RBI working groups and ofConfederation of British Industry,etc. He has been a guest lecturer atthe International ManagementInstitute, Geneva, Wellington StaffCollege. He has been a consultantto several major multinationalcompanies in Europe and USA andcontinues as a business consultant.

Mr. Nanda has around 57 years ofrich experience in the areas such asf inance, corporate af fairs,international trade and commerce,business strategy, etc

Terms and Conditions ofappointment/re-appointmentincluding detail of remunerationsought to be paid

Details of remuneration last drawn(FY 2017-18)*

Nil Nil Nil Nil

Terms and condit ions of theappointment and detail ofremuneration sought to be paid isindicated in Resolution No. 8.

Rs. 8.0 lacs

All four appointments/ re-appointments are on rotation basis and no remuneration (including sitting fee) is payable.

*The remuneration of Independent Directors excludes sitting fees and reimbursement of expenses incurred for attending Board/Committee meetings.

138138

Annexure A



Board Membership of othercompanies [excluding SML ISUZULimited] as on March 31, 2018

Chairman [C]/Member[M] of theCommittee of the Board of Directorsof the companies in which he/sheis a director as on March 31, 2018**

No. of Board Meetings attendedduring FY 2017-18

No. of shares held in the Companyas on March 31, 2018

Relationship withother Directors and KMPs

Takeru Kikkawa

1. Chongqing Sumisho YunxinLogistics Co. Ltd, China

2. Fujiwa Machinery Industry (Hubei)Co. Ltd, China

3. Fujiwa Machinery Industry(Kunshan) Co. Ltd, China

4. SC Machinery & Service Co. Ltd,Japan

5. Kiriu Corporation, Japan

Nil

4

Nil

Pankaj Bajaj

1.Sumitomo Corporation India Pvt.Limited

SML Isuzu Limited

• Risk Management Committee [M]

Sumitomo Corporation India PvtLimited

• CSR Committee [M]

5

Nil

Gota Iwanami

1. Toyota Nigeria Limited

2. Hino Motors Sales Vietnam, Ltd.

3. SC Abeam AutomotiveConsulting, Japan

4. Toyota Libya F.ZC.

SML Isuzu Limited

• Nomination & RemunerationCommittee [M]

N.A.(appointed w.e.f. 23.03.2018)

Nil

Masaki Morohoshi

1.Sumitomo Corporation India Pvt.Limited

2. J JImpex (Delhi) Private Limited

Sumitomo Corporation India PvtLimited

• CSR Committee [C]

N.A.(appointed w.e.f. 23.03.2018)

Nil

P K Nanda

1. JMG Corporation Limited

SML Isuzu Limited

• Audit Committee [C]

• Risk Management Committee [C]

• Nomination & RemunerationCommittee [C]

JMG Corporation Limited

• Audit Committee [M]

5

Nil

None of the Directors of the Company are inter-se related to each other or with the Key Managerial Personnel of the Company

** This include Committees of the Board of the Companies incorporated in India.

139

Annexure A



Date of Birth (Age)

DIN No.

Original Date of Appointment

Qualification(s)

Experience (including expertise inspecific functional area)

A K Thakur

01.06.1941(76 yrs)

00031778

31.01.2006

B.Com, FCA

Mr Thakur served in Finance & AuditDivision of a leading commercialorganisation in Kolkata for about 11 yearstill May 1978. He joined Unit Trust of Indiain May 1978 and retired as an ExecutiveDirector in May 2001 after 23 years of service.

On retirement from Unit Trust of India hejoined a reputed Chartered Accountants Firmas a Partner and continued there till August2010.

Mr Thakur has around 52 years of richexperience in area such as accounts, audit,finance, investment and corporate affairsand has experience of more than 32 years ofbeing a Board Member in large number ofreputed commercial organisations either asa nominee of Unit Trust of India or in hisindependent capacity.

Eiichi Seto

04.01.1959(59 yrs)

02704734

28.05.2010

Bachelor's degree in Law, WasedaUniversity, Japan

Mr. Seto was appointed as a Non-ExecutiveDirector of the Company on 28th May, 2010and on 26th December, 2013 he becameManaging Director & CEO. He has around36 years of rich global experience in theautomobile industry.

Mr. Seto joined Sumitomo Corporation in1982 and has several years of experiencein the motor vehicles department. In 1993,he was appointed as General Manager,Automotive Department in SumitomoCorporation de Mexico and in 2004, he wasalso appointed as Vice President andGeneral Manager, Detroit Office, SumitomoCorporation of America. In 2007, he wasappointed as Director andGeneral Manager,Melbourne Office, Sumitomo AustraliaPrivate Limited. Further in 2009, he was alsoappointed as General Manager, AutomotiveManufacturing Business Department,Sumitomo Corporation.

Gopal Bansal

02.02.1956(62 yrs)

06836592

11.02.2014

B.Com, FCA, ACS

Mr. Bansal was appointed as Whole-timeDirector & CFO with effect from 11thFebruary, 2014. He started his career in 1980with Punjab Tractors Limited - PTL (SwarajGroup) as Management Trainee and gotassociated with SML Isuzu on secondmentfrom PTL, the erstwhile promoter of theCompany. In 2004, he rose to the position ofVice President - Finance and CompanySecretary in the Company and in 2010 asExecutive Director - Finance and CompanySecretary.

Mr. Bansal has over 34 years of experiencein areas such as corporate affairs, finance &accounts,risk management, secretarial &taxation, investor relations, etc

Yugo Hashimoto

12.09.1960(57 yrs)

08165797

To be appointed w.e.f. 9th August, 2018

Graduate from Waseda University, Japan

Mr. Yugo Hashimoto has been appointed asan Additional Director of the Company w.e.f9th August, 2018 and as Managing Director& CEO w.e.f 10th August, 2018.

Mr. Hashimoto joined SumitomoCorporation, Japan in April, 1984 and sincethen has held several positions (in differentcountries) in various departments includingAutomotive Business & Motor VehiclesDept. Before moving to India, he wasPresident of Sumitomo Corporation deMexico S.A. de C.V. and President ofJapanese Chamber of Commerce in Mexico.

Mr. Hashimoto has 34 years of rich globalexperience in the automotive business.

Terms and Conditions of appointment/re-appointment including detail ofremuneration sought to be paid

Details of remuneration last drawn(FY 2017-18)*

Terms and conditions of the appointmentand detail of remuneration sought to be paidis indicated in Resolution No. 9.

Rs. 8.0 lacs


Rs. 143.4 lacs


Rs. 187.2 lacs

Terms and conditions of the appointmentand detail of remuneration sought to be paidis indicated in Resolution No. 12& 13.

N.A.

*The remuneration of Independent Directors excludes sitting fees and reimbursement of expenses incurred for attending Board/Committee meetings.

140140

Annexure A



Board Membership of other companies[excluding SML ISUZU Limited] as onMarch 31, 2018

Chairman [C]/Member[M] of the Committeeof the Board of Directors of the companiesin which he/she is a director as on March31, 2018**

No. of Board Meetings attended duringFY 2017-18

No. of shares held in the Company as onMarch 31, 2018

Relationship withother Directors and KMPs

A K Thakur

1. Peerless Securities Limited

2. Rama Phosphate Limited

3. Rama Industries Limited

SML ISUZU Limited• Audit Committee [M]• Risk Management Committee[M]Rama Industries Limited• Audit Committee [M]• Nomination & Remuneration Committee [M]• CSR Committee [M]Rama Phosphate Ltd.• Audit Committee [M]Peerless Securities Ltd.• Audit Committee [C]• Nomination & Remuneration Committee [M]

5

Nil

Eiichi Seto

Nil

SML Isuzu Limited• Stakeholders Relationship Committee [M]

• Corporate Social ResponsibilityCommittee [M]

5

Nil

Gopal Bansal

Nil

SML Isuzu Limited

• Audit Committee [M]

• Risk Management Committee [M]

• Stakeholders Relationship Committee [M]

• Corporate Social ResponsibilityCommittee [M]

5

Nil

Yugo Hashimoto

1. Sumitomo Corporation de Mexico S.A. deC.V.

2. Hirotec Mexico S.A. de C.V.3. Hal Aluminum Mexico S.A. de C.V.

Nil

N.A.(to be appointed w.e.f. 9th August, 2018)

Nil

None of the Directors of the Company are inter-se related to each other or with the Key Managerial Personnel of the Company

** This include Committees of the Board of the Companies incorporated in India.

141

Annexure B

Statement as required under Schedule V of the Companies Act, 2013(with reference to Resolution at Item No. 10, 11 & 13)

I. General Information:

(i) Nature of Industry:

The Company is in the business of manufacture of Commercial vehicles.

(ii) Date or expected date of commencement of commercial production:

The Company was incorporated on 26th July 1983 and commenced its commercial operations in the year 1986.

(iii) In case of new companies, expected date of commencement of activities as per project approved by financialinstitutions appearing in the prospectus:

Not Applicable

(iv) Financial performance based on given indicators - as per audited financial statements for the year ended31st March, 2018:

(Rs. crores)

Particulars FY 2017-18 FY 2016-17

Net Revenue (net of excise) 1138.2 1360.3

Net Profit in accordance with Section 197 of the Companies Act, 2013 16.3 93.1

Profit/ (Loss) Before Tax 9.5 84.1

Profit/ (Loss) After Tax 8.5 63.0

Net Worth 398.1 403.8

(v) Foreign investments or collaborators, if any:

Sumitomo Corporation, Japan, the Promoters, holds 43.96% shareholding of the Company. Isuzu Motors Limited,Japan, with whom the Company has technical assistance agreements, holds 15% shareholding of the Company.The Company has not made any foreign investments.

II. Information about the appointee:

(i) Background details:

(a) Mr. Eiichi Seto

Mr. Seto was appointed as a Non-executive Director of the Company on 28th May, 2010 and on 26th December,2013, he became Managing Director & CEO. He has around 36 years of rich global experience in the automobileindustry. Mr. Seto joined Sumitomo Corporation in 1982 and has several years of experience in the motorvehicles department. In 1993, he was appointed as General Manager, Automotive Department in SumitomoCorporation de Mexico and in 2004, he was appointed as Vice President and General Manager, DetroitOffice, Sumitomo Corporation of America. In 2007, he was appointed as Director and General Manager,Melbourne Office, Sumitomo Australia Private Limited. Further in 2009, he was also appointed as GeneralManager, Automotive Manufacturing Business Department, Sumitomo Corporation.

142142

(b) Mr. Gopal Bansal

Mr. Bansal was appointed as Whole-time Director & CFO of the company with effect from 11th February,2014. He started his career in 1980 with Punjab Tractors Limited - PTL (Swaraj Group) as ManagementTrainee and got associated with SML Isuzu on secondment from PTL, the erstwhile promoter of the Company.In 2004, he rose to the position of Vice President - Finance and Company Secretary in the Company and in2010 as Executive Director -Finance and Company Secretary. Mr. Bansal has over 34 years of experience inareas such as corporate affairs, finance & accounts, risk management, secretarial & taxation,investor relations, etc.

(c) Mr. Yugo Hashimoto

Mr. Yugo Hashimoto has been appointed as Managing Director & CEO of the company with effect from 10thAugust, 2018. He joined Sumitomo Corporation, Japan in April, 1984 and since then has held several positionsin various departments including Automotive Business & Motor Vehicles Dept. Before moving to India, hewas President of Sumitomo Corporation de Mexico S.A. de C.V. and President of Japanese Chamber ofCommerce in Mexico. Mr. Hashimoto has 34 years of rich global experience in Automotive Business.

(ii) Past remuneration during the financial year ended 31st March, 2018 :

Name of the Director Amount (Rs. in lakhs)

Mr. Eiichi Seto, Managing Director & CEO 143.4

Mr. Gopal Bansal, Whole-time Director & CFO 187.2

Mr. Yugo Hashimoto, Managing Director & CEO N.A.(to be appointed w.e.f 10th August, 2018)

(iii) Recognition or awards: Nil

(iv) Job Profile and suitability:

i . Mr. Eiichi Seto

Mr. Eiichi Seto, Managing Director & CEO, is overall in-charge of running the affairs of the Company underthe supervision and control of the Board of Directors. He is also a member of Board sub-committees such asStakeholders Relationship Committee and Corporate Social Responsibility Committee.

Taking into consideration his rich experience in the automobile industry, the Board of Directors has bestowedthe above responsibilities to Mr. Seto.

i i . Mr. Gopal Bansal

Mr Gopal Bansal being the Whole-time Director & Chief Financial Officer of the Company is responsible forfinance & accounts, risk management, corporate affairs & taxation. He is also a member of Boardsub-committees such as Audit Committee, Stakeholders Relationship Committee, Corporate SocialResponsibility Committee and Risk Management Committee. As a member of the Senior Management Group,he participates in the strategic financial planning and establishment & monitoring of internal control processes.

Taking into consideration his rich experience in the automobile industry, the Board of Directors has bestowedthe above responsibilities to Mr. Bansal.

i ii . Mr. Yugo Hashimoto

Mr. Yugo Hashimoto, as Managing Director & CEO, will be overall in-charge of running the affairs of theCompany under the supervision and control of the Board of Directors.

Taking into consideration his rich experience in the automobile industry, the Board of Directors has bestowedthe above responsibilities to Mr. Hashimoto,effective from 10th August, 2018.

143

(v) Remuneration proposed, Notice period and Severance fees, etc.:

As per the details given in the Resolution No. 10, 11 & 13 of the Notice.

(vi) Comparative remuneration profile with respect to industry, size of the Company, profile of the position andperson (in case of expatriates the relevant details would be with respect to the country of his origin):

Taking into consideration the size of the Company, the profile of Mr. Eiichi Seto, Mr. Gopal Bansal andMr. Yugo Hashimoto, the responsibilities shouldered/to be shouldered by them and the industry benchmarks, theremuneration proposed to be paid to them is commensurate with the remuneration package(s) paid to similar seniorlevel counterpart(s) in other companies.

(vii) Pecuniary relationship directly or indirectly with the Company, or relationship with the managerial personnel,if any:

Besides the remuneration proposed to be paid to them, Mr. Eiichi Seto, Mr. Gopal Bansal and Mr. Yugo Hashimotodoes not have any other pecuniary relationship with the Company or relationship with the managerial personnel.

III. Other Information:

(i) Reasons of loss or inadequate profits:

During Financial Year 2017-18, the sales volume of the Company reached 11355 vehicles only against 14909 soldin the previous year due to shortage of vehicles, firstly, caused by the unexpected and sudden order of theSupreme Court of India, on 29th March 2017, banning sale of BS III compliant vehicles effective 1st April 2017.The order rendered the entire inventory of BS III vehicles, built up for the ensuing school bus season (April-July 2017),non-saleable. Thereafter, supply of vehicles was impacted due to shortage of some critical components.

Due to drop in sales volume, turnover (net of excise) for the year was considerable lower at Rs. 1120.8 croresagainst Rs. 1342.8 crores in the previous year. Additionally, substantial investments in Plant & Machinery andother facilities during the year, as a part of Company's ongoing capex project (covered in the Report of Directors),resulted in higher depreciation and interest costs, which further impacted the profitability of the Company.

As a result, for the financial year ended 31st March, 2018, the Company made lower profit (before tax) ofRs. 9.5 crores against Rs. 84.1 crores earned during the previous year.

(ii) Steps taken or proposed to be taken for improvement

The Company has taken various initiatives towards improvement in sales and reduction in costs as summarizedbelow :

a) Introduction of new products / models, in particular the Global Series trucks with new improved cabin havingfeatures for more comfort & safety, Ecomax LR in the bus segment, new range of CNG vehicles with TurboCNG Engine and higher power Engine for tippers.

b) Introduction of the next generation Telematics solution named 'SML SAARTHI' for advanced transportationmanagement and on-road 24x7 service support which will help customers, especially fleet owners, to managetheir vehicles more efficiently and on real-time basis.

c) With installation of automatic PTCED Plant, the Company has introduced latest best in class paint technologyfor truck cabins to improve quality and durability.

d) Sales promotion & brand building initiatives - incentive schemes for dealers & their salesmen to push morefield work; mobile applications for handling customers queries & tracking progress of salesmen, CorporateIdentity Program (CIP) for dealers, tie-up with ecommerce websites for improvement in brand visibility & togenerate more queries etc.

e) New dealerships being established in the potential areas not covered so far.

f) Appropriate steps have been taken to ensure availibility of vehicles with adequate and timely procurement ofcomponents.

g) Cost Reduction exercises being undertaken aggressively at all levels and in all Functions / Departments ofthe Company.

(iii) Expected increase in productivity and profits in measurable terms:

The aforesaid steps taken by the Company are expected to improve the Company's sales and profitability in nearfuture.

IV. Disclosures:

The information and disclosures of the remuneration package of all the Directors has been provided in the CorporateGovernance Report, forming part of the Annual Report, under the heading "Remuneration to Directors" for the year ended31st March, 2018.

Regd. Office & Works : By Order of the Board

Village Asron, for SML ISUZU LIMITED

Distt. Shahid Bhagat Singh Nagar(Nawanshahr), Punjab-144 533Email:[email protected] (PARVESH MADAN)CIN : L50101PB1983PLC005516 Company SecretaryWebsite : www.smlisuzu.com ACS–31266

Dated: 30th June, 2018

mailto:Email:[email protected]


NOTES

ROUTE MAP FORAGM VENUE

from AMRITSAR

Gurudwara Tibbi Sahib

RO PAR NEW BUS STAND (Roopnagar)

SML ISUZU LIMITED Village '• Registered Office & Works ASRON (AGM Venue)

1'

2 kms. (approx_)

---- ROOPNAGAR

Kurali

Kharar

SAS Nagar (Mohali)

50 kms. (approx.)

CHANDIGARH

... from NANGAL

CHANDIGARH to SML ISUZU LTD., VILLAGE ASRON: 52 kms. (approx.)

PROXY FORM[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of Companies (Management and Administration) Rules, 2014]

SML ISUZU LIMITED(CIN: L50101PB1983PLC005516)

Registered Office & Works: Village Asron, Distt. Shahid Bhagat Singh Nagar (Nawanshahr), Punjab - 144 533Tel. 01881-270255 Fax : (91) 1881-270223

Email:[email protected] Website: www.smlisuzu.com

Name of the Member (s):

Registered Address:

Email id:

Folio / DP ID-Client ID No.*:

* applicable for investors holding shares in electronic form

I/We, being the member(s) holding________________________ equity shares of the above named Company hereby appoint:(1) Name ___________________________________ Address __________________________________________________

E-mail id _________________________________Signature ___________________________________or failing him/her;

(2) Name ___________________________________ Address __________________________________________________

E-mail id _________________________________Signature ___________________________________or failing him/her;

(3) Name ___________________________________ Address __________________________________________________

E-mail id _________________________________Signature _________________________________________________

as my/our proxy to attend and vote for me/us and on my/our behalf at the 34th Annual General Meeting of the Company, to beheld on Thursday, 9th August, 2018 at 3.00 P.M. at the Registered office at Village Asron, Distt. Shahid Bhagat Singh Nagar,Nawanshahr, Punjab - 144533 and at any adjournment thereof in respect of such resolutions as are indicated below:

Resolutions Optional** Ordinary Business For Against

1 Adoption of Financial Statements, the reports of the Board of Directors and Auditors for the year ended 31st March, 2018

2 Declaration of Dividend on Equity Shares

3 Re-appointment of Mr. Takeru Kikkawa (DIN 03107280) as Director, who retires by rotation

4 Re-appointment of Mr. Pankaj Bajaj (DIN 00337925) as Director, who retires by rotation

5 Fix remuneration of the Statutory Auditors, B S R & Associates LLP

Special Business6 Appointment of Mr. Gota Iwanami (DIN 08094102) as Director liable to retire by rotation- as an Ordinary Resolution

7 Appointment of Mr. Masaki Morohoshi (DIN 07302404), as Director liable to retire by rotation- as an Ordinary Resolution

8 Continuation of appointment of Mr. P.K. Nanda (DIN 00751931) as an Independent Director - as a Special Resolution

9 Continuation of appointment of Mr. A.K. Thakur (DIN 00031778) as an Independent Director - as a Special Resolution

10 Approval for payment of minimum remuneration to Mr. Eiichi Seto (DIN 02704734), Managing Director & CEO, in caseof no profits / inadequate profits - as a Special Resolution

11 Approval for payment of minimum remuneration to Mr. Gopal Bansal (DIN 06836592), Whole-time Director & CFO, incase of no profits / inadequate profits - as a Special Resolution

12 Appointment of Mr. Yugo Hashimoto (DIN 08165797) as Director - as an Ordinary Resolution

13 Appointment of Mr. Yugo Hashimoto (DIN 08165797) as Managing Director & Chief Executive Officer - as a SpecialResolution

14 Alteration of Memorandum of Association of the Company - as a Special Resolution

15 Adoption of new Articles of Association of the Company - as a Special Resolution

Notes:1. This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours

before the commencement of the Meeting.2. A PROXY NEED NOT BE A MEMBER OF THE COMPANY.3. A person can act as proxy on behalf of members not exceeding fifty and holding in the aggregate not more than ten percent of the total share capital

of the Company carrying voting rights. A member holding more than ten percent of the total share capital of the Company carrying voting rights mayappoint a single person as proxy and such person shall not act as a proxy for any other person or shareholder.

4. For the Resolutions, Notes and Explanatory Statement, please refer to the Notice of the 34th Annual General Meeting.5. **It is optional to put a 'X' in the appropriate column against the Resolutions indicated in the Box. If you leave the 'For' or 'Against' column blank

against any or all Resolutions, your Proxy will be entitled to vote in the manner as he/she thinks appropriate.6. Please complete all details including details of member(s) in the above box before submission.

Signed this _____________ day of ____________________ 2018

Signature of Shareholder ________________________________

Signature of Proxyholder(s) ______________________________

AffixRevenue

Stamp



ATTENDANCE SLIP

SML ISUZU LIMITED(CIN: L50101PB1983PLC005516)

Registered Office & Works: Village Asron, Distt. Shahid Bhagat Singh Nagar (Nawanshahr), Punjab - 144 533Tel . 01881-270255 Fax : (91) 1881-270223

Email: [email protected] Website: www.smlisuzu.com

34th Annual General Meeting - 9th August, 2018 (Thursday)

Please complete this Attendance Slip and hand it over at the entrance of the Meeting Hall.

Name of the Shareholder/ Proxy ______________________________________________________________________

Address ______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

Folio No. _________________________________

DP ID* _________________________________

Client ID* _________________________________

No. of Shares held _________________________________

I/We hereby record my/our presence at the 34TH ANNUAL GENERAL MEETING of the Company on 9th August, 2018(Thursday) at 3:00 P.M. at its Registered Office at Village Asron, Distt. Shahid Bhagat Singh Nagar (Nawanshahr),Punjab - 144 533.

*To be used for shares held in electronic form

SIGNATURE OF THE SHAREHOLDER/PROXY



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MEMORANDUM OF ASSOCIATION

OF

SML ISUZU LIMITED

The Memorandum of Association was amended vide members’ resolution passed at the Annual General Meeting of the Company held on 9th August, 2018.

I) The name of the Company is SML ISUZU LIMITED. II) The REGISTERED OFFICE of the Company will be situated in the State of Punjab. III) The objects for which the Company is established are :

A) THE OBJECTS TO BE PURSUED BY THE COMPANY ON ITS INCORPORATION ARE:

1. To carry on all or any of the business of manufacturers, assemblers, producers, importers, exporters, buyers, sellers, stockists, suppliers, distributors, wholesale/retail dealers, repairers and lessors, of mobile vehicles for transport of men and material, self-propelled or otherwise, including commercial vehicles, buses, motor cars, jeeps, trailers and conveyances of all kinds and description suitable for use on land and their motive power-units, transmissions, propulsion systems, chassis, bodies and all assemblies, components, accessories, tools thereof.

2. To operate and deal in garages, warehouse and other facilities, spare-parts, fuels and lubricants for such mobile vehicles, their energy-sources and the goods carried therein.

3. To design, assemble, manufacture or otherwise deal in equipments and instruments concerning all types of mobile vehicles.

B) THE MATTERS WHICH ARE NECESSARY FOR FURTHERANCE OF THE OBJECTS SPECIFIED IN CLAUSE III(A) ARE:

1. Technical Information and Know-how: To acquire from any person, firm or body corporate or unincorporate whether in India or elsewhere, technical information, know-how, process, engineering, manufacturing and operating data, plans, layout and blueprints, useful for the design, erection and operations of plant required for any of the businesses of the Company and to acquire any grant or licence and other rights and benefits in the foregoing matters and things.

2. Acquire Plant, Machinery, Stocks: To acquire by purchase, lease, concession, grant, licence or otherwise, such lands, buildings, minerals, water works, plant, machinery, stock-in-trade, stores, rights, privileges, easements and other property as may from time to time be deemed necessary for carrying on the business of the Company, and to build or erect upon any land of the Company howsoever acquired such manufactories, workshops, warehouses, offices, residences and other buildings, and to erect such machinery and construct such roads, ways, tramways, railway branches or sidings, bridges, reservoirs, water courses, hydraulic works and other works and convenience as may be deemed necessary for the purposes of the Company, or any of them, and to hold any property whatsoever, either in India or abroad.

3. Construction of Factories, etc.: To acquire, build, make, construct, equip, maintain, improve, alter and work factories, buildings, roads, playgrounds, water courses and other works and conveniences which may be necessary or convenient for the purpose of the Company or may seen calculated directly or indirectly to advance the Company’s interests and to contribute, to subsidise or otherwise assist or take part in the construction, improvement, maintenance, working, management, carrying out or control thereof.

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4. Acquire and Undertake Business: To purchase, acquire and undertake all or any part of the business, property and liabilities of any person, or company carrying on or proposing to carry on any business which this Company is authorised to carry on or possessed of property suitable for the purpose of the Company or which can be carried on in conjunction therewith or which is capable of being conducted so as directly or indirectly to benefit the Company and to pay for the same by shares, debentures, cash or otherwise and to conduct, carry on, or liquidate and wind up such business.

5. Payment for Property and Services: To pay for any property, rights or privileges, acquired by the Company or for the services rendered or to be rendered in connection with the promotion of or the business of or the Company or for acquisition of any property for the Company or otherwise either wholly, or partially in cash or in shares, bonds, debentures or other securities of the Company and to issue any shares either as fully paid-up or with such amount credited as paid up thereon, as may be agreed upon to charge any such bonds, debentures or other securities upon all or part of the property of the Company. While so doing the Company shall comply with all requirements of law for the time being in force.

6. Disposal of Undertaking and Property of Company: To sell, exchange, mortgage, let on lease, royalty or tribute, grant licences, easements, options and other rights over and in any other manner deal with or dispose of the whole or any part of the undertaking, property, assets, rights and effects of the Company for such consideration as may be thought fit and in particular for stocks, shares, whether fully or partly paid up, or securities of any other company.

7. Properties and Rights: To improve, manage, cultivate, develop, exchange, let on lease, mortgage, sell, dispose of, turn to account, grant rights and privileges in respect of, or otherwise deal with all or any part of the properties, rights and concessions of the Company on such terms as the Company shall determine and to supply power, light and heat, and to lay out land for building purposes, and to sell the same, and to build on, improve, let on building leases, advance money to persons for building or otherwise to develop the same.

8. Sell, Sublet, Rights and Property: To sell or sublet any rights, concession or licence obtained or contracts entered into and generally to sell the whole or any part of the property and business of the Company for cash or for shares whether fully paid up or not, debentures, or securities of another company or partly in cash or partly in such shares, debentures or securities as are distributed in specie amongst the members or otherwise.

9. Payment for Underwriting Brokerage on Issue: To pay out of the Company’s funds, the cost of underwriting and expenses incurred in connection with all matters preliminary and incidental to the formation, promotion and incorporation of this Company and the costs, underwriting expenses, brokerage on issue of shares or debentures, incentives and expenses incurred in connection with all matters preliminary and incidental to the formation and incorporation of any company which may be promoted by this Company and underwrite the shares or debentures issued by any such company.

10. Payment of Services: To remunerate any person or company for services rendered or to be rendered in placing or assisting to place, or guaranteeing the placing of, any of the shares of the Company’s capital, or debentures, debenture-stock, or other securities of the Company, or in or about the formation or promotion of the Company or the conduct of its business.

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11. Holding Stock, Shares and Securities: To issue on commission, subscribe for, acquire, hold, sell and otherwise deal in shares, debentures, debenture-stock, bonds, mortgages, obligations and securities of any kind issued or guaranteed by any company (body corporate or undertaking) of whatever nature and whatsoever constituted or carrying on business and shares, stocks, debentures, debenture- stock, bonds, mortgages, obligations and other securities issued or guaranteed by any government, sovereign ruler, commissioner, trust, municipal, local or other authority or body of whatever nature, whether in India or elsewhere.

12. Guarantee: To guarantee the performance of any contract or obligation of and the payment and repayment of money or of dividends, and interest or premiums payable on any stocks, shares or securities of any company, corporation, firm, any authority or any person whether incorporated or not in any case in which such guarantee may be considered likely, directly or indirectly, to further the objects of the Company or the interest of its shareholders.

13. Patents, etc.: To apply for, purchase or otherwise acquire and protect, prolong and renew in any part of the World any patents, patent rights, brevets d’ invention, trade marks, designs, licences, protections, concessions, monopolies and the like conferring any exclusive or non-exclusive or limited right to use any secret or other information as to any invention or process or privilege which may seem capable of being used for any of the purposes of the Company or the acquisition of which may seem calculated directly or indirectly to benefit the Company and to use, exercise, develop, manufacture under or grant licences or privileges in respect of, or otherwise turn to account, the property rights information so acquired and to carry on any business in any way connected therewith and to pay royalties, if anywhere necessary.

14. Improvement of Patents and other Rights: To expend money in experimenting, testing and improving or seeking to improve any patents, rights, inventions, discoveries, processes or information of the Company or which the Company may acquire or propose to acquire.

15. Research Laboratories, Colleges and Provision of Lectures: To establish, provide, maintain and conduct or otherwise subsidise research laboratories and experimental workshops, for scientific and technical research and experiments, to undertake and carry on scientific and technical researches, experiments and tests of all kinds, to promote studies and researches, both scientific and technical, investigations and inventions by providing, subsidising, endowing or assisting laboratories, workshops, libraries, lectures, meetings and conferences and by providing or contributing to the award of scholarships, prizes, grants to students or otherwise generally to encourage, promote and reward studies, researches, investigations, experiments, tests and inventions of any kind that may be considered likely to assist any business which the Company is authorised to carry on.

16. To Insure against Losses, Damages and Risks: To insure with any other company, firm or persons against losses, damages and risks of all kinds which may affect the Company, provided that nothing herein contained shall empower the Company to carry on the business of life assurance, accident assurance, fire assurance, employee’s liability assurance, industrial assurance, motor assurance or any business of insurance or, reinsurance within the meaning of the Insurance Act, 1938, or any Act amending, extending or re-enacting the same.

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17. Receive Securities: To receive monies, securities or valuables on deposit at interest or otherwise from persons having dealings with the Company or for custody on any terms whatsoever, provided the Company shall not carry on the business of banking as defined under the Banking Regulations Act, 1949. Nor shall such transactions be tantamount to carrying on banking business.

18. Advances, Deposits and Loans: To lend and advance money, either with or without security and give credit to such persons, firms or body corporates (including government), in particular to customers and others having dealings with the Company upon such terms and conditions as the Company may think fit (not amounting however, to any banking business as defined in Banking Regulations Act, 1949).

19. Financial and Commercial Obligations: To undertake financial and commercial obligations, transactions and operations of all kinds.

20. Investment: To invest any monies of the Company in such investments, movable or immovable (other than shares or stock in the Company), as may be thought proper and to hold, sell or otherwise deal with such investments.

21. Borrowing: To receive monies on deposit or loan, borrow or raise money in such manner as the Company shall think fit, and in particular by the issue of debentures, or debenture-stock (perpetual or otherwise) and to secure the repayment of any money borrowed, raised or owing by mortgage, charge or lien upon all or any of the property or assets of the company (both present and future), including its uncalled capital, and also by a similar mortgage, charge or lien to secure and guarantee the performance by the Company or any other person or company of any obligation undertaken by the Company or any other person or Company as the case may be and to purchase, redeem or pay off any such securities provided that the Company shall not carry on banking business as defined in Banking Regulations Act, 1949

22. Registration of Company outside India: To procure the registration or recognition of the Company in/or under the laws of any place outside India.

23. Bank Accounts and Negotiable Instruments: To open any kind of account in any Bank and to draw, make, accept, endorse, discount, negotiate, execute and issue bills of exchange, promissory notes, bills of lading, warrants, debentures and other negotiable or transferable instruments or securities.

24. Employ Staff: To engage, employ, suspend and dismiss executives, engineers, agents, managers, superintendents, assistants, clerks, workers and other employees and to remunerate any such person at such rate as shall be thought fit, to grant bonus, compensation, pension or gratuity to any such person, or to his widow or children and generally to provide for the welfare of all employees.

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25. Promotion: To form, incorporate or promote any company or companies, whether in India or elsewhere, having amongst its or their objects the acquisition of all or any of the assets or control, management or development of the Company or any other objects or object which in the opinion of the Company could or might directly or indirectly assist the Company in the management of its business or the development of its properties or otherwise prove advantageous to the Company and to pay all or any of the costs and expenses incurred in connection with any such promotion or incorporation and to remunerate any person or company in any manner as the Company shall think fit for services rendered or to be rendered in obtaining subscription for or placing or assisting to place or to obtain subscription for or for guaranteeing the subscription for or the placing of any shares, in the capital of the Company or any bonds, debentures, obligations or securities of the Company or any stock, shares, bonds, debentures, obligations or securities of any other Company held or owned by the Company or in which the Company may have an interest or in or about the formation or promotion of the Company or the conduct of its business or in or about the promotion or formation of any other Company in which the Company may have an interest.

26. Government and other Concessions and to Promote and Oppose Legislation: To enter into any arrangements and to take all necessary or proper steps with Governments or with other authorities supreme, national, local, municipal or otherwise of any place in which the Company may have interests and to carry on any negotiations or operations for the purpose of directly or indirectly carrying out the objects of the Company or effecting any modification in the constitution of the Company or furthering the interests of its members and to oppose any such steps taken by any other company, firm or persons which may be considered likely, directly or indirectly, prejudice the interests of the Company or its members and to promote or assist the promotion, whether directly or indirectly, of any legislation which may appear to be in the interests of the Company and to oppose and resist, whether directly or indirectly, any legislation which may seem disadvantageous to the Company, and to obtain from any such Government Authority or any company, any license, charter, contracts, decrees, rights, grants, loans, privileges or concessions which the Company may think it desirable to obtain and to carry out, exercise and comply with any such arrangements, charters, contracts, decrees, rights, privileges or concessions.

27. Amalgamation and Partnership: To amalgamate or to enter into partnership or into any arrangement for sharing profits, union or interest, cooperation, joint-venture, licence, or reciprocal concession with any person or persons, company or companies carrying on or engaged in, or about to carry on or engage in, or being authorised to carry on or engage in, any business or transaction which the Company is authorised to carry on or engage in or which can be carried on in conjunction therewith or which is capable of being conducted so as directly or indirectly benefit the Company.

28. Publicity: To adopt such means of making known the products of the Company as may seem expedient and in particular by advertising in the press, radio, television or cinema, by circulars, by purchase, construction and exhibition of works of art or interest, by publication of books and periodicals and by granting prizes, rewards and donations.

29. To Create Funds: To create any depreciation fund, reserve fund, insurance fund, sinking fund, or any other special fund whether for depreciation or repairs, replacement, improvement, extension or maintenance of any of the properties of the Company or by way of Development Rebate

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Reserve, Investment Allowance Reserve or for redemption of debentures or redeemable preference shares or for any other purpose conducive to the interests of the Company.

30. Assist Companies under same Management: To assist any other Company under the same management within the meaning of the Companies Act, 2013 or any statutory modification thereof, in any manner and to any extent including the giving of loan and guarantees or the providing of securities of any kind whatsoever in connection with any loan given to the latter by any person, firm or body corporate.

31. Establishment of Association Connected with Company or for Benefit of Employees of Company: To apply the assets of the Company in any way in or towards the establishment, maintenance or extension of any association, institution or fund in any way connected with any particular trade or business or with trade or commerce generally and particularly with the trade, including any association, institution or fund for the protection of the interests of masters, owners and employers against loss by bad debts, strikes, combinations, fire, accidents or otherwise or for the benefit of any clerks, workmen or others at any time employed by the Company or any of its predecessors in business or their families or dependants and whether or not in common with other persons or classes of persons and in particular of friendly, cooperative and other societies, regarding rooms, libraries, educational and charitable institutions, refectories, dining and recreation rooms, places of worship, schools, hospitals, residential buildings, bungalows, hotels, offices, warehouses, godowns, structures, erections, parks, gardens and to grant charities, gratuities, pensions and allowances and to contribute to any funds raised by public or local subscription for any purpose whatsoever and to farm, cultivate and otherwise develop the lands for the Company or in possession of the Company.

32. Trusts: To undertake and execute any trusts, the undertaking of which may seem to the Company desirable and either gratuitously or otherwise and vest any real or personal property, rights or interests acquired by or belonging to the Company in any person or Company on behalf of or for the benefit of the Company, and with or without any declared trust in favour of the Company.

33. Aid to Labour and Other Industrial Associations: To aid pecuniarily or otherwise, any association, body or movement having for an object the solution, settlement, or surmounting, of industrial or labour problems or troubles or the promotion of industry or trade.

34. Donations: To subscribe, contribute or otherwise to assist or guarantee money for any national, charitable, benevolent, public, general or useful objects or for any exhibitions or subject to the provisions of the Companies Act, 2013 or any statutory modification thereof , for any purpose which may be likely directly or indirectly to further the objects of the Company or the interest of its members.

35. Distribution of Dividend, etc.: Subject to the provisions of Section of 52 the Companies Act, 2013 to place, to reserve or to distribute as dividend or bonus or bonus shares among the members or otherwise to apply as the Company may from time to time may think fit any monies belonging to the Company including those received by way of premium on shares or debentures issued by the Company at a premium and any monies received in respect of dividends accrued on forfeited shares and monies arising from the re-issue by the Company of forfeited shares or by appropriation of unclaimed dividends.

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36. Provident Institutions: To establish and maintain or procure the establishment and maintenance of any provident fund or any contributory or non-contributory pension or superannuation funds for the benefits of and give or procure the giving of donations, gratuities, pensions, allowances or emoluments to any persons who are or were at any time in the employment or service of the Company, or of any Company which is a subsidiary of the Company or is allied to or associated with the Company or with any such subsidiary Company or who are or were at any time Directors or Officers of the Company or of any such other Company as aforesaid, and the wives, widows, families and dependants of any such persons, and also establish and subsidise and subscribe to any institutions, associations, clubs or funds calculated to be for the benefit of or to advance the interests and well-being of the Company or of any such other Company as aforesaid and make payment to or towards the insurance of any such persons as aforesaid and do any of the matters aforesaid either alone or in conjunction with such other Company as aforesaid.

37. Distribution in Specie: To distribute among the members in specie or in kind any property of the Company or any proceeds of sale or disposal of any property of the Company, but so that no distribution amounting to a reduction of capital shall be made except with the sanction (if any) for the time being required by law; and to capitalise its reserves.

38. Defend and File Suits: To institute and to defend any suit, appeal, application for review of revision or any other application of any nature whatsoever to take out executions, to enter into agreements of reference to arbitration and to enforce and where need be to contest any awards and for all such purposes to engage or retain counsels, attorneys and agents and when necessary to remove them.

39. Promotion of Rural Development, etc.: 1) To undertake, carry out, promote and sponsor or contribute to rural development

including any programme for promoting the social and economic welfare of, or the upliftment of the public in any rural area and to incur an expenditure on any programme of rural development and to assist execution and promotion thereof either directly or through an independent agency or in any other manner.

2) To undertake, carry out, promote and sponsor or assist any activity for the promotion and growth of national economy and for discharging what the Directors may consider to be social and moral responsibilities of the Company to the public or any section of the public and also any activity which the Directors consider likely to promote national welfare or social, economic or moral upliftment of the public or any section of the public and in such manner and by such means as the Directors may think fit, and Directors may without prejudice to the generality of the foregoing provisions, undertake, carry out, promote and sponsor any activity for publishing of any books, literature, newspapers etc., or for organising lectures or seminars likely to advance these objects or for giving merit awards, for giving scholarships, loans or any assistance, to deserving students or other scholars or persons to enable them to prosecute their studies or academic pursuits or researches and of establishing, conducting or assisting any institutions, funds, trusts, etc., having any one of the aforesaid objects as one of its objects by giving donations or otherwise in any other manner, and the Directors may at their discretion, in order to implement any of the above mentioned objects or purposes, transfer without consideration or at such fair or consessional value as the Directors may think fit and divest the ownership of any property of the Company to or in favour of any public or local body or authority or Central or State Government or any public institution or trusts or funds as the Directors may approve.

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40. Tractors, Two-wheelers and other Mobile Vehicles: To carry on all or any of the business of manufacturers, assemblers and producers, importers, exporters, buyers, sellers, stockists, suppliers, distributors, wholesale/retail dealers of tractors, two-wheelers and all other mobile vehicles and conveyances of all description suitable for use in and on land, sea or air and their motive power units, transmissions, propulsions system, chassis, bodies and all assemblies, accessories, tools thereof.

41. Machine Tools: To design, assemble, manufacture or otherwise deal in general and special purpose machine tools.

42. Oil Extracts: To purchase, sell, import, export, all types of oil and/or carry on business of extraction of oil from all oil bearing commodities and seeds, and manufacture crude oil, refined oil, perfumed and other type of oils.

43. Fertilizers & Agricultural Inputs: To manufacture, purchase, sell, import, export or otherwise deal in all types of agricultural inputs and appliances such as fertilizers, manures, diesel engines, pumping sets, seeds, insecticides, tools and appliances.

44. Manufacture Metals, Metal Works, Rollings, etc.: To set up steel furnaces and to carry on the business of iron founders, metal founders, metal presses, metal rollers, metal works, rolling mills, metal converter, manufacturers of metal, metal fittings, and other utensils, mechanical engineers and manufacturers of workshops equipments, ball and roller bearings, compressors, medium and light machines and tools, industrial and agricultural implements and machinery, power driven or otherwise, brass founders, boilers makers, mill wrights mechanists, galvanisers, electroplaters, iron and steel converters, smiths, wood workers, buildings, painters, metallurgists, electrical engineers, water supply engineers, gasmarkers, painters and carriers, contractors and merchants and to buy, sell, manufacture, repair, convert, alter, let on hire and deal in machinery, implements, rolling stock, metal and hardware of all kinds.

45. Electrical Goods: To carry on the business of manufacturers of and dealers in all kinds of electrical goods and appliances.

46. Agricultural Machinery: To develop, design, assemble, manufacture, fabricate, produce, import, export, buy, sell, operate, run, let on hire, or otherwise deal in plants, machineries, tools, equipments, appliances, spares, implements, accessories, petrol and diesel engines, for land reclamation, forest cleaning, spraying, threshing, harvesting, sowing, ploughing, digging and all other types of machinery used in agricultural operations, tractors, earthmovers and all other like and allied equipments.

47. Batteries: To undertake and carry on the business as manufacturers, assemblers, fabricators of dry cells, inert cells and batteries, accumulators and storage batteries, cadmium, rechargeable batteries, flash-lights, carbon electrodes, zinc calotte and all appliances and replacement parts and things, used in the manufacture of or in connection with such cells, batteries and flash-lights.

48. Selling Agents & Distributors: To transact and carry on all kinds of agency and distribution business and act as selling agents of joint stock limited companies, private or public and of firms or individuals and to enter into working arrangements of all kinds with companies, corporations, firms or individuals.

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49. Market Surveys: To carry out marketing services, survey generally and also on behalf of such parties as may be approved by the Company from time to time and to publish reports of the market survey carried out by the Company.

50. Importers & Exporters: To carry on the business of exporters, importers, commission agents and distributors.

51. Hire Purchase: To purchase, sell or hire out or sell on hire-purchase system all kinds of motor vehicles, motor-cycles, aeroplanes, launches, boats, mechanical or otherwise, sewing machines, radio sets, gramophones, pianos and musical instruments, cameras, electric fans, cinematographic machines and apparatus, heaters, refrigerators, and other electrical domestic appliances, furniture, wooden and metallic house-hold equipments and all classes of machinery and/or other articles that the Company may deem fit.

52. Investment Companies: To invest in or subscribe or purchase or otherwise acquire in India or abroad shares, stocks, debentures, securities (Government or others) or other interests in any other company, movable or immovable property of any kind, to make payments thereon in advance of calls and to hold, sell, exchange, underwrite or otherwise dispose of or deal with the same from time to time as may seem expedient or to otherwise invest the money of the Company.

53. Trustees: To act as trustees, executors, attorneys, receivers, administrators, nominees, agents to undertake guarantee and indemnity business, execute trusts of all kinds and to exercise all the powers of custodians and trustees.

54. Consultants: Technical:

1) To carry on the profession of consultants on management, employment, engineering, industrial and technical matters to industry and business and to act as employment agents. To carry on the business of printing and publishing books, magazines, journals and newspapers. Personnel:

2) To provide personnel recruitment services and to carry on business of industrial consultants and providing management services by providing personnel services, accountants, typists, salesmen, supervisors, workers and labourers, incur expenses for transportation, postage, stationery and other auxiliary and incidental expenses for business or service contracts entered in by any person. Engineering:

3) To carry consultancy in engineering, architectural and commercial spheres.

Metallurgical & Building: 4) To work as consulting engineers and contractors in all branches or work whatsoever known

to engineering iron masters, metallurgists, builders, hardware merchants, metal workers and the like.

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55. Petrol Pumps: To carry on the business of purchase and sale of petroleum and petroleum products, to act as dealers and distributors of petroleum companies, to run service stations for the repair and servicing of automobiles and to manufacture or deal in fuel oils, cutting oils, greases, etc.

IV) The liability of the members is limited and this liability is limited to the amount unpaid, if any, on the shares held by them.

V) The Authorised Share Capital of the Company is Rs.40,00,00,000/- divided into 4,00,00,000 Equity Shares of Rs. 10/-each.

VI) We several persons whose names and addresses are subscribed hereunder are desirous of being Formed into a Company in pursuance of the Memorandum of Association and respectively agree to take the number of shares in the Capital of the Company set opposite our respective names:

Name, Father's Name, Address description and Occupation of subscribers

Signature of the subscribers

Numbers of equity shares taken by each

Signature & Address of the witnesses

1. Sh. V.M. Aggarwal, Sd/- 10

S

d/-

Shri

V.

Kum

ar,

H.N

o. 1

27,

Phas

e I

V,

S.A

.S.

Nag

ar,

Serv

ice

S/o Late Inderjit Aggarwal, H.No. 144, Sector 18-A Chandigarh. Service

2. Sh. S.K. Jain, Sd/- 10 S/o Sh. D.L. Jain, H.No. 1485, Sec. 22-B, Chandigarh. Service

3. Sh. Ram Lubhaya, Sd/- 10 S/o Sh. Jaggu Ram, H.No. 1602, Sec. 18-D, Chandigarh. Service

4. Sh. P. Sivaram Sd/- 10 S/o Sh. R. Padmanabhan, H.No. 1230, Sector 19-B, Chandigarh. Service

5. Sh.Ashok Chhabra, Sd/- 10 S/o Sh. F.C. Chhabra, H.No. 171, Sec. 36-A, Chandigarh. Service

6. Sh. Chandra Mohan Sd/- 10 S/o Late. Seth Ram Gupta, H. No. 202, Sec. 36-A, Chandigarh. Company Executive

7. Sh. Y.P. Mahajan, Sd/- 10 S/o Late Sh. Amar Nath Mahajan, H.No. 2130, Sector 15-C, Chandigarh. Company Executive

Total number of Shares 70

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ARTICLES OF ASSOCIATION OF

SML ISUZU LIMITED

The following regulations comprised in these Articles of Association were adopted pursuant to members’ resolution passed at the Annual General Meeting of the Company held on 9th August, 2018 in substitution for, and to the entire exclusion of, the earlier regulations comprised in the extant Articles of Association of the Company.

INTERPRETATIONS

1. In these Articles unless the context otherwise requires:

a) “the Company” or “this Company” means SML ISUZU LIMITED.

b) “the Act” means The Companies Act, 2013, and every statutory modification or re-enactment thereof for the time being in force and references to “Sections” of the Act shall be deemed to mean and include references to sections enacted in modification or replacement thereof in force at the relevant time, unless such modification or replacement is considered to be applied together with any appropriate alteration in relevant provisions of these Articles.

c) “these Articles” mean these Articles of Association of the Company as originally framed or as altered from time to time or applied in pursuance of any previous company law or of the Act.

d) “Annual General Meeting” means a General Meeting of the holders of equity shares held annually in accordance with the applicable provisions of the Act.

e) “Authorised Share Capital” means such capital as is authorized by the Memorandum of the Company to be the maximum amount of share capital of the Company.

f) “Beneficial Owner” means the beneficial owner as defined in the Depositories Act.

g) “Board of Directors” or “Board”, means the collective body of the Directors of the Company.

h) “Debenture” includes debenture stock, bonds or any other instrument of the Company evidencing a debt, whether constituting a charge on the assets of the Company or not.

i) “Depositories Act” means the Depositories Act, 1996 or any statutory modification or re-enactment thereof, for the time being in force.

j) “Depository” means a Depository as defined in the Depositories Act.

k) “Director ” means a Director appointed to the Board of the Company.

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l) “Equity Shares” mean fully paid-up equity shares of the Company having a par value of Rs. 10 (ten) per equity share.

m) “Extraordinary General Meeting” means an extraordinary general meeting of the holders of equity shares duly called and constituted in accordance with the provisions of the Act.

n) “General Meeting” means any meeting of the shareholders of the Company convened from time to time in accordance with the Act and these Articles.

o) “National Holiday” includes Republic Day i.e. 26th January, Independence Day i.e. 15th August, Gandhi Jayanti i.e. 2nd October and such other day as may be declared as National Holiday by the Central Government.

p) “the Office” means the Registered Office of the Company for the time being.

q) “Register of Members” means the register of members to be kept pursuant to Section 88 of the Act.

r) “the Rules” means the applicable rules for the time being in force as prescribed under relevant Sections of the Act.

s) “the Seal” means the common Seal of the Company. t) “SEBI” means the Securities & Exchange Board of India. u) “SEBI Listing Regulations” mean the SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015 and any statutory amendment thereto or modifications thereof.

v) “Securities” means Securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation), Act, 1956.

w) “Share” means any share in the share capital of the Company.

x) Words importing the singular number shall include the plural and vice versa, words importing the masculine gender shall include the feminine and neuter gender and words importing persons shall include bodies corporate and all other persons recognised by law.

y) “Written” and “in Writing” includes printing, lithography, electronic or other modes of representing or reproducing words in a visible form.

z) Unless the context otherwise requires, the words or expressions contained in these Articles shall bear the same meaning as in the Act or the Rules as the case may be, which are in force.

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2. 1) The regulations contained in Table F in the first schedule to

the Act, shall not apply to the Company, except in so far as the same are repeated, contained or expressly made applicable in these Articles or by the said Act.

2) The regulations herein contained shall be the regulations for the management of the Company and for the observance of its members and their representatives and shall be binding on the Company and its members as if they are the terms of an agreement between them, subject to any exercise of the statutory powers of the Company with respect to the deletion of or addition to its regulations by resolution as prescribed or permitted by the Act.

Table F excluded Company to be governed by these Articles

SHARE CAPITAL

3. The Authorised Share Capital of the Company shall be such amount as may be specified in Clause V of the Memorandum of Association of the Company.

Share capital

4. (a) Subject to the provisions of these Articles and the Act, the Shares shall be under the control of the Board, which may issue, allot or otherwise dispose of the same or any of them to such persons, in such proportion and on such terms & conditions and either at a premium or at par and at such time as the Board may from time to time think fit.

(b) Subject to the provisions of the Act and these Articles, the Board may issue and allot Shares in the capital of the Company on payment or part payment for any property or assets of any kind whatsoever sold or transferred, goods or machinery supplied or for services rendered to the Company in conduct of its business and any Shares which may be so allotted, may be issued as fully paid-up or partly paid-up otherwise than for cash, and if so issued, shall be deemed to be fully paid-up or partly paid-up Shares, as the case may be.

Shares under Control of the Board

5. The Board, may, in accordance with the Act and requisite approval of the shareholders, issue on preferential allotment or private placement basis, further Shares to - (i) persons who, at the date of offer, are holders of Equity

Shares of the Company; such offer shall be deemed to include a right exercisable by the person concerned to renounce the Shares offered to him or any of them in favour of any other person; or

(ii) employees under any scheme of employees’ stock option; or

(iii) any persons, whether or not those persons include the persons referred to in clause (i) or clause (ii) above.

Further issue of share capital

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6. Any application signed by or on behalf of an applicant for Shares, followed by an allotment of any Shares therein, shall be an acceptance of Shares within the meaning of these Articles; and every person who thus or otherwise accepts any Shares and whose name is on the Register of Members shall, for the purposes of these Articles, be a ‘Member’.

Acceptance of Shares

7. If at any time the share capital of the Company is divided into different classes of Shares, the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may, subject to the provisions of Section 48 of the Act and whether or not the Company is being wound up, be varied with the consent in writing of the holders of three-fourth of the issued Shares of that class, or with the sanction of a special resolution passed at a separate meeting of the holders of the issued Shares of that class.

Variation of Rights

Subject to the provisions of the Act, to every such separate meeting, the provisions of these Articles relating to General Meetings shall mutatis mutandis apply.

Provisions as to general meetings to apply mutatis mutandis to each meeting

8. The rights conferred upon the holders of the Shares of any class

issued with preferred or others rights shall not, unless otherwise provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation or issue of further Shares ranking paripassu therewith.

Conditions under which rights conferred upon holders of Shares of any class be varied by creation or issue of further Shares

9. 1) The Company may exercise the power of paying commission conferred by sub section (6) of Section 40 of the Act, provided that the rate per cent, or the amount of the commission paid or agreed to be paid shall be disclosed in the manner required by that Section read with the Rules.

2) Subject to applicable laws, the rate of the commission shall not exceed five per cent (or any other prescribed rate) of the price at which the Shares in respect whereof the same is paid are issued and in the case of Debentures two and a half percent (or any other prescribed rate) of the price at which the Debentures in respect whereof the same is paid are issued.

3) The commission may be satisfied by payment in cash or by the allotment of fully or partly paid Shares or partly in the one way and partly in the other.

4) The Company may also, on any issue of Shares, pay such brokerage as may be in compliance with the applicable laws.

Payment of commission and brokerage

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10. Any Debentures or other Securities may be issued subject to the provisions of the Act, these Articles, such other laws, rules and regulations, guidelines, as may be applicable from time to time, at a premium or otherwise, and may be made assignable free from any equities between the Company and the person to whom the same may be issued and may be issued on the condition that they shall or may be redeemable, non-convertible or convertible into Shares of any denomination.

Issue of Debentures and others Securities

11. Except as required by law, no person shall be recognised by the Company as holding any Shares upon any trust, and the Company shall not be bound by, or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any Share, or (except only as by these Articles or by law otherwise provided) any interest in any fractional part of a Share or any other rights in respect of any Share, except an absolute right to the entirety thereof in the registered holder.

Non-recognition of Trust, etc.

12. 1) Every person whose name is entered as a Member in the Register of Members shall be entitled to receive within such time limits after allotment or after the application for the registration of transfer or transmission of any Share is received by the Company, as prescribed under the law for the time being in force, within such other period as the conditions of issue of the Shares shall provide:

a) one share certificate for all his Shares without payment, or

b) several share certificates, each for one or more of his Shares, upon payment of such fees/ charges as may be fixed by the Board.

Member entitled to share certificate

2) Every certificate shall specify the shares to which it relates and the amount paid-up thereon and shall be signed by two Directors or by a Director and the Company Secretary and shall be under the Seal, which shall be affixed in the presence of the persons required to sign the certificate.

Shares Certificates to be issued

3) In respect of any Share or Shares, held jointly by several persons, the Company shall not be bound to issue more than one share certificate, and delivery of a share certificate for a Share to one of several joint holders shall be sufficient delivery to all such holders.

Issue of Share Certificates in case of joint holders

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13. If a share certificate is worn out, torn, defaced, or mutilated or if there is no further space on the back for endorsement of transfer, then upon production and surrender thereof to the Company, a new certificate may be issued in lieu thereof, and if any certificate is lost or destroyed, it may be renewed on payment of such fee, as may be fixed by the Board, and on such terms, as to evidence and indemnity and the payment of out of pocket expenses incurred by the Company in investigating evidence, as the Board thinks fit, provided that while issuing a share certificate the Company shall comply with Section 46 of the Act read with the Rules.

Provided that no fee shall be charged for issue of new share certificates in replacement of those which are old, decrepit or worn out or where the cages on the reverse for recording transfers have been utilized.

Fresh Share Certificate in case of deface, destroy or loss of original Share Certificate

14. The Board shall have power— (a) to make such provisions, by the issue of fractional certificates/

coupons or by payment in cash or otherwise in trustees or otherwise as it thinks fit, for the case of Shares or other Securities becoming distributable in fractions; and

(b) to authorise any person to enter, on behalf of all the Members

entitled thereto, into an agreement with the Company providing for the allotment to them respectively, credited as fully paid-up, of any further Shares or other Securities to which they may be entitled upon such capitalisation, or as the case may require, for the payment by the Company on their behalf, by the application thereto of their respective proportions of profits resolved to be capitalized, of the amount or any part of the amounts remaining unpaid on their existing Shares.

Any agreement made under such authority shall be effective and binding on all such Members.

Fractional Certificates

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15. If any Share stands in the names of two or more persons the person first named in the Register of Members shall, as regards receipts of dividends, the service of notices and other documents and, subject to the provisions of these Articles, all or any other matter, connected with the Company, except voting at General Meetings, the transfer of the Share(s) and any other matter provided in the Act, be deemed the sole holder thereof.

The joint holders of a Share shall be jointly and severally liable for the payment of all the calls or instalments and other payments due in respect of such Share(s) and for all incidents thereof according to the Company’s regulations.

The provisions of these Articles with respect to joint holders shall apply mutatis mutandis to all other Securities of the Company, whether issued in physical or dematerialised form unless otherwise provided in the Act.

First named joint holder deemed sole holder

16. The provisions of these Articles relating to share certificates shall mutatis mutandis apply to certificates relating to all other Securities including Debentures of the Company, except where the Act otherwise provide.

Provisions as to issue of certificates to mutatis mutandis apply to other Securities including Debentures

LIEN

17. The Company shall have a first and paramount lien upon every Share (other than a fully paid-up Share) registered in the name of each Member (whether solely or jointly with others) and upon the proceeds of sale thereof for all monies (whether presently payable or not) called or payable at a fixed time in respect of such Shares and no equitable interest in any Share shall be created, except upon the footing and condition that Article will have full effect. And such lien shall extend to all dividends payable and bonuses declared from time to time in respect of such Shares. Unless otherwise agreed registration of a transfer of Shares will operate as a waiver of the Company’s lien, if any, on such Shares. The Board may at any time declare any Shares to be wholly or in part exempt from the provisions of this clause.

Nature and extent of Company’s lien

18. The Company may sell, in such manner as the Board thinks fit, any Shares on which the Company has a lien. Provided that no such sale shall be made :

Enforcing lien on sale

1) unless a sum in respect of which the lien on the Shares exists is presently payable; or

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2) until the expiration of 14 (fourteen) days after a notice in

writing stating and demanding payment of such part of the amount in respect of which the lien exists on the Share as is presently payable, has been given to the registered holder for the time being of the Share or the person entitled thereto by reason of his death or insolvency and stating that if the, amount so demanded is not paid within the period specified, at the Office, the said Shares shall be sold.

19. 1) To give effect to any such sale of Shares under Article 18, the Board may authorise some person to transfer the Shares covered by such sale to the purchaser thereof.

Transfer of the Shares subject to lien

2) The purchaser shall be registered as the Member in respect of the Shares comprised in any such transfer.

Purchaser to be registered as Shareholder

3) The purchaser shall not be bound to see to the application of the purchase money, nor shall his title to the Share be affected by any irregularity or invalidity in the proceedings in reference to the sale.

Purchaser’s title not effected

20. 1) The proceeds of such sale shall be received by the Company and applied in payment of the whole or a part of the amount, in respect of which the lien exists upon the sold Shares, as is presently payable.

Application of proceeds of sale

2) The residue, if any, shall, subject to a like lien for sums not presently payable as existed upon the sold Shares before the sale, be paid to the person entitled to the sold Shares immediately after the sale.

Excess of sale proceeds to be paid to Shareholder

21. Subject to the Act and these Articles, the right of lien of the Company shall extend to other Securities including Debentures of the Company.

Provisions as to lien to mutatis mutandis apply to other Securities including Debentures

CALLS ON SHARES

22. 1) The Board may, by a resolution at the meeting of the Board, from time to time, make calls upon the Members in respect of monies unpaid on their Shares (whether on account of the nominal value of the Shares or by way of premium) and not by the conditions of allotment thereof made payable at fixed times. Provided that no call shall be payable at less than one month from the date fixed for payment of the last preceding call.

Calls and restrictions thereon

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2) Each Member shall, subject to receiving at least 14 (fourteen) days’ notice, specifying the time or times and place of payment of the call money, pay to the Company at the time or times and place so specified, the amount called on his Shares.

Notice on calls

3) A call may be revoked or postponed at the discretion of the Board.

Revocation and postponement of call

23. All calls shall be made on a uniform basis on all Shares falling under the same class.

Provided that Shares of the same nominal value on which different amounts have been paid-up shall not be deemed to fall under the same class.

Calls on shares of same class to be made on uniform basis

24. A call shall be deemed to have been made at the time when the resolution of the Board authorising the call was passed. Call money may be required to be paid in instalments.

When call deemed to be made

25. The joint holders of a Share shall be jointly and severally liable to pay all calls in respect thereof.

Liability of joint holders

26. 1) If a sum called in respect of a Share is not paid before or on the day appointed for payment thereof, the person from whom the sum is due shall pay interest thereon from the day appointed for payment thereof to the time of actual payment at such rate of interest as the Board may determine.

Interest payable on call if not paid in time

2) The Board shall be at liberty to waive payment of any such interest wholly or in part.

Power of the Board to waive payment of interest

27. 1) Any sum which by the terms of issue of a Share becomes payable on allotment or at any fixed date, whether on account of the nominal value of the Share or by way of premium, shall, for the purposes of these Articles be deemed to be a call duly made and payable on the date on which, by the terms of issue, such sum becomes payable.

Sum payable on allotment deemed to be call

2) In case of non-payment of such sum, all the relevant provisions of these Articles as to payment of interest and expenses, forfeiture or otherwise shall apply as if such sum had become payable by virtue of a call duly made and notified.

Effect of non-payment

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28. 1) Subject to provisions of Section 50 of the Act, the Board: a) may, if it thinks fit, receive from any Member willing

to advance all or any part of the monies uncalled and unpaid upon any Shares held by him; and

b) upon all or any of the monies so advanced, may (until the same would, but for such advance, become presently payable) pay interest at such rate as may be fixed by the Board.

2) Money paid in advance of calls shall not in respect thereof confer a right to receive dividend or to participate in the profits or any voting rights until the same would become presently payable by him.

Power to accept unpaid share capital although not called up

29. On the trial or hearing of any suit or proceedings brought by the Company against any Member or his representative to recover any debt or money claimed to be due to the Company in respect of his Share, it shall be sufficient to prove that the name of the defendant is or was, when the claim arose, on the Register of Members of the Company as a holder or one of the holders of the number of Shares in respect of which such claim is made, and that the amount claimed is not entered as paid in the books of the Company, and it shall not be necessary to prove that the appointment of the Directors who resolved to make any call, nor that a quorum of Directors was present at the Board meeting at which any call was resolved to be made, nor that the meeting of the Board at which any call was resolved to be made was duly convened or constituted, nor any matter whatsoever, but the proof of the matters aforesaid shall be conclusive evidence of the debt.

Evidence in suit by Company

30. Neither the receipt by the Company of a portion of any money which shall from time to time be due from any Member to the Company in respect of his Shares, either by way of principal or interest, nor any indulgence granted by the Company in respect of the payment of any such money, shall preclude the Company from thereafter proceeding to enforce forfeiture of such Shares as hereinafter provided.

Partial payment not to preclude forfeiture

31. The provisions of these Articles relating to calls shall mutatis mutandis apply to any other Securities including Debentures of the Company.

Provisions relating to calls to mutatis mutandis apply to other Securities including Debentures

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TRANSFER AND TRANSMISSION OF SHARES

32. 1) The instrument of transfer of any Share in the Company shall be executed by or on behalf of both the transferor and the transferee.

Execution of transfer

2) The transferor shall be deemed to remain a holder of the Share until the name of the transferee is entered in the Register of Members in respect thereof.

33. Shares shall be transferred in the Form prescribed under sub section (1) of Section 56 of the Act read with the Rules.

Form of transfer

TRANSFER OF SHARES

34. The Board may, subject to the right of appeal conferred by Section 58 of the Act, decline to register:

a) the transfer of a Share not being a fully paid-up Share to a person of whom they do not approve; or

b) any transfer of Shares on which the company has a lien.

Board’s Power to refuse to register

35. In case of Shares held in physical form, the Board may also decline to recognize any instrument of transfer unless:

a) the instrument of transfer is duly executed and is in the Form prescribed under sub section (1) of Section 56 of the Act read with the Rules;

b) the instrument of transfer is accompanied by the Share Certificate to which it relates, and such other evidence as the Board may reasonably require to show the right of the transferor to make the transfer; and

c) the instrument of transfer is in respect of only one class of Shares.

Requirements of instrument of transfer

36. All instruments of transfer which shall be registered, shall be retained by the Company, but may be destroyed upon the expiration of such period as the Board may from time to time determine. Any instrument of transfer which the Board declines to register shall (except in any case of fraud) be returned to the person depositing the same.

Registered instrument of transfer to be in the custody of the Company

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37. On giving of a previous notice of at least 7 (seven) days or such lesser period in accordance with the Act or SEBI Listing Regulations, the registration of transfers may be suspended at such times and for such periods as the Board may from time to time determine.

Provided that such registration shall not be suspended for more than 45 (forty five) days in the aggregate in any year or for more than 30 (thirty) days at any one time.

Suspension of registrations of transfer

38. The provisions relating to transfer of physical Shares through instrument of transfer shall not apply to the shares of the Company which have been dematerialized.

Provisions relating to instrument of transfer not to apply to dematerialised shares

39. The provisions of these Articles relating to transfer of Shares shall mutatis mutandis apply to any other Securities including Debentures of the Company

Provisions as to transfer of shares mutatis mutandis apply to other Securities including Debentures

DEMATERIALISATION OF SECURITIES

40. Notwithstanding anything contained herein and subject to the provisions of the Act, the Company shall be entitled to admit its Shares, Debentures and other Securities for dematerialisation pursuant to the Depositories Act and to offer its Shares, Debentures and other Securities for subscription in a dematerialised form. The Company shall further be entitled to maintain a Register of Members with the details of Members holding shares both in physical and/or dematerialised form in any medium as permitted by law including any form of electronic medium.

Dematerialisation of Securities

41. a. Notwithstanding anything to the contrary contained in the Act or the Articles, a depository shall be deemed to be the registered owner for the purpose of effecting transfer of ownership of Security on behalf of the Beneficial Owner.

b Save as otherwise provided in (a) above, the Depository as the

registered owner of the Securities shall not have any voting rights or any other rights in respect of the Securities held by it.

c Every person holding Securities of the Company and whose name is entered as a Beneficial Owner in the records of the Depository shall be deemed to be a Member of the Company. The Beneficial Owner of Securities shall be entitled to all the rights and benefits and be subject to all the liabilities in respect of his Securities which are held by a Depository.

Rights of depositories and Beneficial Owners

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42. Nothing contained in the Act or the Articles regarding the necessity of having distinctive numbers for Securities issued by the Company shall apply to Securities held with a Depository.

Distinctive numbers of Securities held in depositories

43. The register and index of Beneficial Owners maintained by a Depository under the Depositories Act, 1996, shall be deemed to be the register and index of Members and Security holders for the purposes of the Articles.

Register and Index of Beneficial Owners

TRANSMISSION OF SHARES

44. 1) On the death of a Member, the survivor or survivors where the Member was a joint holder, and his nominee or nominees or his legal representative where he was a sole holder shall be the only persons recognised by the Company as having any title to or interest in such Shares.

2) Nothing in clause (1) above shall release the estate of a deceased joint holder from any liability in respect of any Share which had been jointly held by him with other persons.

3) Before recognising any executor or administrator, the Board may require him to obtain a grant of probate or letters of administration or other representation as the case may be, from a competent court in India, provided nevertheless that in any case where the Board or any person authorised by the Board in their absolute discretion and in accordance with the applicable law, rules, regulations, in particular, SEBI Listing Regulations, as enforced from time to time, and other guidelines, think fit, it shall be lawful to dispense with the production of probate or letters of administration or other representation upon such terms as to indemnity or otherwise, as the Board or any person authorised by the Board in their absolute discretion, may consider necessary and adequate.

Survivorship and succession

45. 1) Any person becoming entitled to a Share in consequence of the death, liquidation or insolvency of a Member or by any lawful means other than by a transfer may, upon such evidence being produced as may from time to time properly be required by the Board and subject as herein after provided, elect, either: a) to be registered himself as holder of the Share;

or b) to make such transfer of the Share as the

deceased, liquidated or insolvent Member could have made.

Rights of survivor or successor

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2) The Board shall, in either case, have the same right to decline or suspend registration as it would have had, if the deceased, liquidated or insolvent Member had himself transferred the Share before his death, liquidation or insolvency.

3) The Company shall be fully indemnified by such person from all liability, if any, for actions taken by the Board to give effect to such registration or transfer.

46. 1) If the person so becoming entitled, elects to be registered as holder of the Share himself, he shall deliver or send to the Company a notice in writing, signed by him, stating that he so elects.

2) If the person aforesaid elects to transfer the Share, he shall testify his election by executing a transfer of the Share.

3) All the limitations, restrictions and provisions of these Articles relating to the right to transfer and the registration of transfer of Shares shall be applicable to any such notice or transfer as aforesaid as if the death or insolvency of the Member had not occurred and the notice of transfer was a transfer signed by that Member.

Survivor or successor to give notice

47. 1) On transfer of a Share being registered in his name, a person becoming entitled to a Share by reason of the death or insolvency of the holder shall be entitled to the same dividends and other advantages to which he would be entitled if he was the registered holder of the Shares, except that he shall not, before being registered as a Member in respect of the Shares, be entitled in respect of it to exercise any right conferred by membership in relation to General Meetings.

Right in respect of Shares subject to transmission

48.

2) Provided that the Board may, at any time, give notice requiring any such person to elect either to register himself or to transfer the Shares, and if the notice is not complied with within ninety days, the Board may thereafter withhold payment of all dividends, bonuses or other monies payable in respect of the Share, until the requirements of the notice have been complied with.

The provisions of these Articles relating to transmission by operation of law shall mutatis mutandis apply to any other Securities including Debentures of the Company.

Provisions relating to transmission by operation of law to mutatis mutandis apply to other Securities including Debentures

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NOMINATION

49. Every holder of Securities of the Company may, at any time,

nominate, in the prescribed manner, a person to whom these Securities shall vest in the event of his death and provisions of Section 72 of the Act read with the Rules, shall apply in respect of such nomination.

Nomination

FORFEITURE OF SHARES

50. If a Member fails to pay any call, or instalment of a call, on or before the day appointed for payment thereof, the Board may, at any time thereafter during such time as any part of the call or instalment remains unpaid, serve a notice on him requiring payment of so much of the call or instalment as is unpaid, together with any interest which may have accrued and all expenses that may have been incurred by the Company by reason of such non-payment.

Notice for calls unpaid

51. The notice aforesaid shall: Form of notice

a) name a further day not earlier than the expiry of 14 (fourteen) days from the date of service of notice on or before which the payment required by the notice is to be made; and

Date of payment

b) state that, in the event of non-payment on or before the day so named, the Shares in respect of which the call was made, will be liable to be forfeited.

Effect of non-payment

52. If the requirements of any such notice as aforesaid are not complied with, any Shares in respect of which the notice has been given may, at any time thereafter, but before the payment required by the notice has been made, be forfeited by a resolution of the Board to that effect. Such forfeiture shall include all dividends declared in respect of the forfeited Shares and not actually paid before the date of forfeiture, which shall be the date on which the resolution of the Board to forfeit the Shares is passed, subject to the applicable provisions of the Act.

Forfeiture for non-payment

53. 1) A forfeited Share shall be deemed to be the property of the Company and may be sold, re-allotted or otherwise disposed of, either to the original holder or any other person, on such terms and in such manner as the Board thinks fit.

Disposal of forfeited Shares

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2) At any time before a sale, re-allotment or disposal as aforesaid, the Board may annul the forfeiture on such terms as it thinks fit.

Power to cancel forfeiture

54. 1) A person whose Shares have been forfeited shall cease to be a Member in respect of the forfeited Shares, but shall, notwithstanding the forfeiture, remain liable to pay to the Company all monies which, at the date of forfeiture, were presently payable by him to the Company in respect of the forfeited Shares together with interest thereon from the time of forfeiture until payment at such rate as the Board may determine.

Liability on forfeiture

2) The liability of such person shall cease if and when the Company shall have received payments in full of all such monies in respect of the forfeited Shares.

Liability when ceases

55. 1) A duly verified declaration in writing that the declarant is a Director or the Secretary of the Company and that a Share in the Company has been duly forfeited on a date stated in the declaration shall be conclusive evidence of the facts therein stated as against all persons claiming to be entitled to the forfeited Share.

Declaration of forfeiture of Shares to be conclusive evidence

2) The Company may receive the consideration, if any, given for the forfeited Share on any sale, re-allotment or disposal thereof and may execute a transfer of the Share in favour of the person to whom the Share is sold or disposed of.

Company to transfer Shares on disposal

3) The transferee shall thereupon be registered as the holder of the Share.

Transferee to be shareholder

4) The transferee shall not be bound to see to the application of the purchase money, if any, nor shall his title to the Share be affected by any irregularity or invalidity in the proceedings in reference to the forfeiture, sale, re-allotment or disposal of the Share.

Transferee’s title unaffected

56. The provisions of these regulations as to forfeiture shall apply in the case of non-payment of any sum which by the terms of issue of a Share, becomes payable at a fixed time, whether on account of the nominal value of the Share or by way of premium, as if the same had been payable by virtue of a call duly made and notified.

Provisions regarding forfeiture to apply to all cases of non-payment

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57. The forfeiture of a Share shall involve the extinction of all interest in and also of all claims and demands against the Company in respect of the Share, and all other rights incidental thereto.

Effect of forfeiture

58. Upon any sale after the forfeiture or for enforcing a lien in purported exercise of the powers herein before given, the Board may appoint some person to execute an instrument of transfer of the Share sold and cause the purchasers’ name to be entered in the Register of Members in respect of the Share sold, and the purchaser shall not be bound to see to the regularity of the proceedings or to the application of the purchase money, and after his name has been entered in the Register of Members in respect of such Shares, the validity of the sale shall not be impeached by any person and the remedy of any person aggrieved by the sale shall be damages only and against the Company exclusively.

Validity of sale

59. Upon any sale, re-allotment or other disposal under the provisions of these Articles relating to lien or to forfeiture, the share certificates or share certificates originally issued in respect of the relative Shares shall (unless the same, on demand by the Company, have been previously surrendered to the Company by the defaulting Members) stand cancelled and become null and void and of no effect. When any Shares, under the powers in that behalf herein contained are sold by the Board and the share certificate in respect thereof has not been delivered up to the Company by the former holder of such Share, the Board may issue a new share certificate for Shares, distinguishing it in such manner as it may think fit, from the share certificate not so delivered.

Cancellation of Share Certificate on sale

60. The Board may, subject to the provisions of the Act, accept from any Member on such terms and conditions as shall be agreed surrender of his Shares or stock or any part thereof.

The provisions of these Articles relating to forfeiture and surrender of shares shall mutatis mutandis apply to any other Securities including Debentures of the Company.

Surrender of Shares

Provisions relating to forfeiture and surrender of shares to mutatis mutandis apply to other Securities including Debentures

61.

CONVERSION OF SHARES INTO STOCK

62. The Company may, by ordinary resolution:

1) convert any paid-up Shares into stock; and 2) reconvert any stock into paid-up Shares of any

denomination authorised by these Articles and applicable provisions of the Act.

Conversion into Stock and reconversion into Shares

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63. The holders of Stock may transfer the same or part thereof in the same manner as, and subject to the same regulations under which, the Shares from which the Stock arose might before the conversion have been transferred, or as near thereto as circumstances admit. Provided that the Board may from time to time fix the minimum amount of stock transferable, so, however that such minimum shall not exceed the nominal amount of the Shares from which the stock arose.

Transferability of Stock

64. The holders of the stock shall, according to the amount of stock held by them, have the same rights, privileges and advantages as regards dividends, voting at General Meetings and other matters, as if they held the Shares from which the stock arose; but no such privilege or advantage (except participation in the dividends and profits of the Company and in the assets on winding up) shall be conferred by an amount of Stock which would not, if existing in Shares, have conferred that privilege, or advantage.

Right of Stock-holders

65. Such of the Articles (other than those relating to share warrants), as are applicable to paid-up Shares shall apply to stock and the words “Share” and “Member” in these Articles shall include “Stock” and “Stockholders” respectively.

Stock treated as Shares

ALTERATION OF CAPITAL

66. The Company may, from time to time, by ordinary resolution increase its Authorised Share Capital by such sum, to be divided into Shares of such amount, as may be specified in the resolution.

Increase of Capital

67. Subject to the provisions of Section 61 of the Act, the Company may, by ordinary resolution:

a) consolidate and divide all or any of its share capital into Shares of larger amount than its existing Shares.

Consolidation and division of Shares

b) sub-divide its existing Shares or any of them, into Shares of smaller amount than is fixed by the Memorandum of Association of the Company, so however, that in the sub-division the proportion between the amount paid and the amount, if any, unpaid on each sub-divided Share shall be the same as it was in the case of the Share from which the sub-divided Share is derived.

c) cancel any Shares which, at the date of passing of the resolution in this regard, have not been taken or agreed to be taken by any person, and diminish the amount of its share capital by the amount of the Shares so cancelled.

Cancellation of Shares

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68. The Company may from time to time, by a special resolution and in compliance with the provisions of Section 66 of the Act and the Rules and these Articles, reduce its share capital, and any capital redemption reserve account or Securities premium account or any other reserve in the nature of share capital.

Reduction of Share Capital

BUY-BACK OF SHARES

69. Notwithstanding anything contained in these Articles but subject to the provisions of Sections 68 to 70 and any other applicable provisions of the Act or any other law for the time being in force, the Company may purchase its own shares or other specified Securities.

Buy-back of Shares

GENERAL MEETINGS

70. The Company shall, in addition to any other meetings, each year hold a General Meeting as its Annual General Meeting in accordance with the provisions of Section 96 of the Act, at such time and place as may be determined by the Board and shall specify the meeting as such in the notice calling it. All General Meetings other than Annual General Meeting shall be called an Extra-Ordinary General Meeting. If for any reason beyond the control of the Board, the General Meeting (including an Annual General Meeting) cannot be held on the appointed day, the Board shall have the power to postpone the General Meeting to transact the same business as specified in the original notice, after giving not less than three days intimation to the Members of which a notice should be given to the Members through advertisement in at least two Newspapers, of which one should be in the language of the district in which the Office is situated and another in a newspaper in English language, both having a wide circulation in that district.

Annual General Meeting

71. 1) The Board may whenever it thinks fit, and shall on the requisition of the Members in accordance with the provisions of Section 100 of the Act, proceed to call an Extra-Ordinary General Meeting of the Company. The requisitionists may, in default of Board convening the same, convene-the Extra-Ordinary General Meeting as provided by Section 100 of the Act, provided that unless the Board shall refuse in writing to permit the requisitionists to hold the said meeting at the Office, it shall be held at the Office.

Extra-Ordinary General Meeting

2) Any valid requisition so made by Members must state the object or objects for consideration of which the meeting is proposed to be called, and must be signed by the

Requisition of Members to state object of meeting

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requisitionists and be deposited at the Registered Office; provided that such requisition may consist of several documents in like form, each signed by one or more requisitionists.

3) Upon the receipt of any such requisition, the Board will as soon as practicable and in any case within twenty-one days from the date of receipt of the valid requisition, being deposited at the Registered Office, cause an Extraordinary General Meeting to be called on a day not later than forty-five days from the date of deposit of the requisition, failing which the meeting may be called and held by the requisitionists themselves within a period of three months from the date of the requisition.

Calling of requisitioned meeting

4) If at any time Directors capable of acting who are sufficient in number to form a quorum are not within India, any Director or any two members of the company may call an extraordinary general meeting in the same manner, as nearly as possible, as that in which such a meeting may be called by the Board.

When a Director or any two Members may call an Extra Ordinary General Meeting

CONDUCT OF GENERAL MEETINGS

72. 1) Twenty-one days’ clear notice (either in writing or electronic mode) of every meeting, annual or extra-ordinary, and by whomsoever called, specifying the day, place and hour of meeting, and containing a statement of the business to be transacted thereat, shall be given in the manner hereinafter provided, to such persons as are under these Articles entitled to receive notice from the Company. Provided that the General Meeting may be held at shorter notice with the consent of such number of Members as provided in the Act. The consent for shorter notice may be given in writing or by electronic mode.

2) The accidental omission to give notice to, or the non-receipt of notice by, any Member or other person to whom it should be given, shall not invalidate the proceedings at the meeting.

3) The ordinary business of an Annual General Meeting shall mean business to be transacted at an Annual General Meeting relating to: (i) the consideration of financial statements and consolidation of financial statements, if any and the reports of the Board and auditors; (ii) to elect Directors in place of those retiring by rotation; (iii) the appointment or ratification thereof,

Notice of Meeting Omission to give notice Business to be transacted at the Meeting

21

to appoint auditors and to fix their remuneration; (iv) to declare dividends. All other business transacted at an Annual General Meeting and all business transacted at an Extra-Ordinary General Meeting shall be deemed as special business.

4) No General Meeting, annual or extra-ordinary, shall be competent to enter upon, discuss or transact any business which has not been stated in the notice by which it was convened or called.

Only business stated to be transacted

73. 1) No business shall be transacted at any General Meeting, unless a quorum of Members is present throughout the meeting.

Quorum needed

2) The quorum for a general meeting shall be as provided in the Act.

Quorum for general meetings

3) If within half an hour from the time appointed for holding the meeting, a quorum is not present, the meeting, if convened by or upon the requisition of Members shall stand dissolved, but in any other case, the meeting shall stand adjourned to the same day in the next week or if that day is a public holiday until the next succeeding day which is not a public holiday, at the same time and place or to such other day and at such other time and place as the Board may determine; and if at such adjourned Meeting a quorum of Members is not present at the expiration of half an hour from the time appointed for the meeting, those Members who are present shall be a quorum, and may, transact the business for which the meeting was called.

Meeting dissolved/adjourned if quorum is not present

74. The Chairman, if any, of the Board shall preside as Chairman at every General Meeting of the Company.

Chairman of the Board to preside

75. If there is no such Chairman, or if he is not present within 15 (fifteen) minutes of the time appointed for holding the General Meeting, or is unwilling to act as Chairman of the General Meeting, the Directors present shall elect one of such Directors to be the Chairman of the General Meeting.

When Directors elect Chairman

76. If at any General Meeting, no Director is willing to act as Chairman or if no Director is present within 15 (fifteen) minutes of the time appointed for holding the General Meeting, the Members present shall choose one of such Members to be the Chairman of the General Meeting.

When members elect Chairman

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77. No business shall be discussed at any General Meeting except the election of a Chairman, whilst the Chair is vacant.

Business whilst chair vacant

78. (a) The Chairperson shall have all the powers and authorities under law to conduct and regulate General Meetings;

(b) The Chairperson’s decision on matters of procedure or any matters that arise incidentally during the course of the general meetings shall be final and conclusive.

Chairperson’s power for orderly conduct at general meetings

79. The Chairman of any General Meeting shall be the sole judge of the validity of every vote tendered at such meeting.

Chairman sole judge of the validity of a vote

80. 1) The Chairman may adjourn the General meeting from time to time and place to place in accordance with the provisions of the Act.

Chairman’s power and duty to adjourn the meeting

2) No business shall be transacted at any adjourned General

Meeting, other than the business left unfinished at the General Meeting from which the adjournment took place.

Nature of business at adjourned meeting

3) a) When a General Meeting is adjourned for 30

(thirty) days or more, fresh notice of the adjourned General Meeting shall be given as in the case of an original General Meeting.

Fresh notice required if adjourned for 30 days or more

b) Save as aforesaid and as provided in Section 103 of the Act, it shall not be necessary to give any notice of any adjournment or of the business to be transacted at an adjourned General Meeting.

81. 1) Every question submitted to a meeting shall be decided, in the first instance, unless a poll is demanded under Section 109 of the Act or the voting is carried out electronically, by a show of hands in accordance with Section 107 of the Act read with the Rules. In the case of an equality of votes either on a show of hands or on a poll, the Chairman of the General Meeting shall be entitled to a second or casting vote in addition to vote to which he may be entitled as a Member.

Questions at General Meeting how decided

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2) Unless a poll is demanded or voting is carried out electronically, a declaration by the Chairman that a resolution has, on a show of hands, been carried or carried unanimously or by a particular majority or lost and an entry to that effect in the books containing the minutes of the proceedings of the Company shall be conclusive evidence of the fact without further proof.

Chairman declaration

3) Any business other than that upon which a poll has been demanded, may be proceeded with, pending the taking of the poll.

Poll not to prevent continuous of business

VOTES OF MEMBERS

82. Subject to any rights or restrictions for the time being attached to any class or classes of Shares:

Votes

1) on a show of hands, every Member present in person and being a holder of an equity Share shall have one vote and every person present as a duly authorised representative of a body corporate being a holder of an equity Share shall, if he is not entitled to vote in his own right, have one vote.

2) on a poll or on electronic voting, the voting rights of Members shall be in proportion to his Share in the paid-up equity share capital of the Company.

3) A member may exercise his vote by electronic means in accordance with the Act and shall vote only once.

83. Any member entitled to attend and vote at a General Meeting may

do so either personally or through his duly appointed representative or a constituted attorney or through another person as a proxy on his behalf, for that meeting.

Member may vote in person or otherwise

84. A company or a body corporate which is a Member may vote by proxy or by representative duly appointed in accordance with Section 113 of the Act. A person duly appointed to represent the Member at any General Meeting shall be entitled to exercise the same rights and powers (including the right to vote by proxy and by postal ballot) on behalf of such Member which the person represents, as that Member could exercise if it were an individual Member.

Representation of corporation

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85. In the case of joint holders of Shares, the vote of the senior who tenders a vote, whether in person or by proxy, shall be accepted to the exclusion of the votes of the other joint holders of Shares. For this purpose, seniority shall be determined by the order in which the names of joint holders of Shares stand in the Register of Members.

Joint Holders

86. A Member of unsound mind or in respect of whom an order has been made by any court having jurisdiction in lunacy, may vote, whether on a show of hands or on a poll by his committee or other legal guardian and any such committee or guardian may, on a poll, vote by proxy. Provided that such evidence as the Board may require of the authority of the person claiming to vote shall have been deposited at the Office not less than 24 hours before the time of holding the General Meeting or adjourned General Meeting at which such person claims to vote.

If any Member, be a minor, vote in respect of his Share, will be exercised by his guardian/s. Subject to the provisions of the Act and other provisions of these Articles, any person entitled under the Transmission Clause to any Shares may vote at any General Meeting in respect thereof as if he was the registered holder of such Shares, provided that at least 48 (forty- eight) hours before the time of holding the meeting or adjourned meeting as the case may be at which he proposes to vote, he shall duly satisfy the Board of his right to such Shares, and give such indemnity (if any) as the Board may require unless the Board shall have previously admitted his right to vote at such meeting in respect thereof.

Votes in respect of insane members

Votes in respect of Minor Votes in respect of share of deceased and insolvent member

87.

88.

89. No Member shall be entitled to vote at any General Meeting unless all calls or other sums presently payable by him in respect of Shares in the Company, or in respect of Shares on which the Company has exercised any right or lien, have been paid.

Members in arrears not to vote

90. 1) No objection shall be raised to the qualification of any

voter, except at the General Meeting or adjourned General Meeting at which the vote objected to is given or tendered, and every vote not disallowed at such General Meeting shall be valid for all purposes.

Objection to vote

2) Any such objection made in due time shall be referred to the Chairman of the General Meeting, whose decision thereon shall be final and conclusive.

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91. The instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarised certified copy of that power or authority, shall be deposited at the Office of the Company, not less than 48 hours before the time for holding the General Meeting or adjourned General Meeting at which the person named in the instrument proposes to vote, or in the case of a poll, not less than 24 hours before the time appointed for the taking of poll, and in default the instrument of proxy shall not be treated as valid.

Deposit of Proxies

92. An instrument appointing a proxy shall be in the Form as prescribed under Section 105 of the Act read with the Rules.

Form of Proxy

93. A vote given in accordance with the terms of an instrument of proxy

shall be valid, notwithstanding the previous death or insanity of the principal or the revocation of the proxy or of the authority under which the proxy was executed, or the transfer of the Shares in respect of which the proxy is given. Provided that no intimation in writing of such death, insanity, revocation or transfer shall have been received by the Company at its Office before the commencement of General Meeting or adjourned General Meeting at which the proxy is used.

Continuance of the validity of proxy inspite of death, etc., of principal if no notice is given

BOARD OF DIRECTORS

94. The Board of Directors of the Company shall consist of not less than 3 (three) and not more than 15 (fifteen) Directors until and unless otherwise determined by the Company in General Meeting, by means of a special resolution.

Number of Directors

95. Save as otherwise expressly provided in the Act and these Articles, at every Annual General Meeting of the Company one-third of such of the Directors (excluding independent Directors) for the time being as are liable to retire by rotation in accordance with the provisions of Section 152 of the Act, or if their number is not three or a multiple of three, then the number nearest to one-third, shall retire from office in accordance with the provisions of Section 152 of the Act.

Retirement of Directors by rotation.

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96. 1) The remuneration payable to the Directors, including any managing or whole-time Director or manager, if any, shall be determined in accordance with and subject to the provisions of Section 197 of the Act and the Rules.

2) The remuneration of the Directors shall, in so far as it consists of a monthly payment be deemed to accrue from day to day.

3) Each Director may be paid for each meeting of the Board

or a committee thereof, attended by him, sitting fees of a sum not exceeding Rs. one lakh or as may be determined by the Board of Directors from time to time, in accordance with the provisions of Section 197 of the Act read with the Rules. Provided that for independent Directors and women Directors, the sitting fee shall not be less than the sitting fee payable to other Directors.

4) If any Director , being willing, called upon to perform

extra services or to make any special exertions for any of the purposes of the Company or as a member of a Committee of the Board then, subject to the provisions of Section 197 of the Act read with the Rules, the Board may remunerate the Directors so performing extra services, either by a fixed sum or by a percentage of profits or otherwise and such remuneration may be either in addition to or in substitution of any other remuneration to which he may be entitled.

Remuneration of Directors

5) In addition to the remuneration payable to them in pursuance of the Act, the Director may be paid in accordance with Company’s rules, if any, made by the Board, all travelling, hotel and other expenses incurred by them :

a) in attending and returning from meetings or adjourned meetings of the Board of Directors or any committee thereof or a General Meeting of the Company; or

b) in connection with the business of the Company.

97. 1) Subject to the applicable provisions of Section 161 of the Act, the Board shall have power, at any time and from time to time, to appoint a person as an additional Director provided that the number of the existing Directors and additional Director(s), if any, for the time being and such additional Director to be newly appointed together shall not at any time exceed the maximum strength fixed for the Board by these Articles.

Additional Directors to be appointed by Board

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2) Such person appointed as an additional Director shall hold

office up to the date of next following Annual General Meeting but shall be eligible for appointment by the Company as a Director at that meeting subject to the provisions of the Act.

98. Subject to the provisions of the Act, if the office of any Director appointed by the Company in General Meeting is vacated before his term of office expires in the normal course, the resulting casual vacancy may be filled by the Board of Directors at a meeting of the Board. The Director so appointed shall hold office only up to the date up to which the Director in whose place he is appointed would have held office if it had not been vacated.

Casual Vacancy

99. The Board may appoint any person as a Director nominated by an institution in pursuance of the provisions of any law for the time being in force or of any agreement or by the Central Government or the State Government by virtue of its shareholding in the Company.

Nominee Director

100. The Board may in accordance with and subject to the provisions of Section 161 of the Act, appoint an Alternate Director to act for a Director during his absence for a period of not less than three months from India.

Alternate Director s to be appointed by Board

101. A Director may be or become a Director of any company

promoted by the Company, or in which it may be interested as a vendor, shareholder, or otherwise, and no such Director shall be accountable for any benefit received as Director or shareholder of such company. Such Director before receiving or enjoying such benefits in cases in which the provisions of Section 188 of the Act are attracted will ensure that same have been complied with.

Directors of Companies promoted by the Company

102. The office of Director shall become vacant on resignation by notice in writing or at the happening of any of the events provided in the Act and/ or other applicable laws.

Vacation and termination of office of Directors

103. Every Director present at any meeting of the Board or a committee

thereof shall sign his name in an attendance register to be kept for that purpose.

Attendance of Directors

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POWER OF BOARD OF DIRECTORS

104. The management of the business of the Company shall be vested in the Board and the Board may, subject to the requirements of applicable laws, exercise all such powers, and do all such acts and things, as the Company is so authorized to exercise or do by virtue of its Memorandum of Association or Articles or otherwise.

General Powers of the Company vested in Board

105. The Company may exercise the powers conferred by Section 22 of the Act, with regard to having an official Seal for use abroad, and such powers shall be vested in the Board.

Seal of use abroad

106. The Company shall, subject to the provisions of the Act and/or

SEBI Listing Regulations, keep and maintain at its Office or such other places as the Board may, decide, the statutory registers for such duration and in such manner and containing such particulars as prescribed by the Act and/or SEBI Listing Regulations.

Where under any provision of the Act and/or SEBI Listing Regulations, any person whether a Member of the Company or not, is entitled to inspect any register, return, instrument or document (including electronic records) required to be kept or maintained by the Company, the person so entitled to inspection shall be permitted to inspect the same during such business hours and place as may be determined by the Board in accordance with the provisions of the Act and/or SEBI Listing Regulations.

Statutory Registers

107. The Company may exercise the powers conferred on it by Section 88 of the Act read with the Rules with regard to the keeping of a foreign register, containing the names and particulars of the Members, Debenture-holders, other security holders or beneficial owners residing outside India and the Board may (subject to the said provisions) make and vary such regulations as it may think fit regarding the keeping of any such register.

Foreign Registers

108. Subject to the provisions of the Act, the Directors may enter into any contract or arrangement on behalf of the Company subject to the necessary disclosures and without participation in the meeting of the Board where the contract or arrangement is discussed, as required by the relevant provisions of the Act, wherever any Director is any way, whether directly, or indirectly concerned or interested in the contract or arrangement.

Contracts in which any Director is interested

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BORROWING POWERS

109. Subject to the provisions of Sections 73, 179 and 180 and other applicable provisions of the Act read with the Rules and these Articles, the Board may, by a resolution passed at a meeting of the Board:

(i) exercise all the powers of the Company to borrow money; (ii) mortgage or charge its undertaking, property (both present and future) and uncalled capital, or any part thereof; and (iii) issue Debentures and other Securities whether outright or as security for any debt, liability or obligation of the Company or of any third party. Provided, however where the money to be borrowed together with the money already borrowed (apart from temporary loans obtained from the Company’s bankers in the ordinary course of business) exceeds the aggregate of the paid-up capital of the Company and its free-reserves (not being reserves set out for a specific purpose), the Board shall not borrow such money without the consent of the Company by way of a special resolution at a General Meeting.

Power to borrow

110. Subject to the provisions of these Articles, the payment or repayment of money borrowed as aforesaid may be secured in such manner and upon such terms and conditions in all respects as the Board may think fit, subject to the provisions of the Act, by the issue of bonds, Debentures of the Company, charged upon all or any part of the property of the Company (both present and future).

The payment or repayment of money borrowed

111. Subject to the applicable provisions of the Act and these Articles, any Debentures or other Securities may, by a resolution passed at the meeting of the Board, be issued at a discount, premium or otherwise, may be made assignable free from any equities between the Company and person to whom the same may be issued and may be issued on the condition that they shall be convertible into Shares of any authorised denomination, and with privileges and conditions as to redemption, surrender, drawings, allotment of Share, attending (but not voting) at General Meetings, appointment of Directors and otherwise. Provided that Debentures with the right to allotment of or conversion into Shares, wholly or partly, shall not be issued except with the sanction of the Company by a resolution passed in a General Meeting.

Terms of issue of Debentures

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112. All cheques, promissory notes, drafts, hundies, bills of exchange and other negotiable instruments, and all receipts for monies paid to the Company, shall be signed, drawn, accepted, endorsed, or otherwise executed as the case may be, by such person and in such manner as the Board may from time to time by resolution passed at a meeting of the Board determine.

Execution of negotiable instruments, etc.

PROCEEDINGS OF THE BOARD

113. 1 ) Subject to the provisions of the Act and SEBI Listing Regulations, the Directors may meet together as a Board for the conduct of business from time to time, and the Board may adjourn and otherwise regulate its meetings and proceedings as it may think fit.

Meeting of Directors

2) Any Director of the Company may, at any time, summon a meeting of the Board, and the Company Secretary on the requisition of a Director , shall convene a meeting of the Board, in consultation with the Chairman or in his absence, the Managing Director or in his absence the Whole-time Director .

Provided that atleast four Board meetings (or such number as may be prescribed under the Act and/or SEBI Listing Regulations from time to time) shall be held in a calendar year and there should not be a gap of more than one hundred and twenty days between two consecutive Board meetings.

When meeting to be convened

114. Subject to the provisions of the Act, the participation of Director s in a meeting of the Board may be either in person or through video conferencing or audio visual means or any other permitted mode.

Participation through electronic mode

115. Subject to the provisions of the Act, the quorum for a meeting of the Board shall be one third of its total strength for the time being (any fraction contained in that one third being rounded off as one) or two Directors, whichever is higher and, the participation of the Directors by video conferencing or by other audio visual means shall also be counted for the purpose of quorum. Provided further, that where at any time the number of interested Director s exceeds or is equal to two third of the total strength (which shall not include Directors whose places are vacant), the number of the remaining Directors, that is to say, the number of Directors who are not interested, present at the meeting of the Board, being not less than two, shall be the quorum during such time.

Quo rum

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116. Where a meeting of the Board could not be held for want of

quorum, then, the meeting shall automatically stand adjourned to the same day at the same time and place in the next week or if that day is a National Holiday, till the next succeeding day, which is not a National Holiday, or to such other day and at such other time and place as the Board may determine.

Adjournment of meeting for want of quorum

117. 1) Save as otherwise expressly provided in the Act, questions arising at any meeting of the Board shall be decided by a majority of votes.

2) In case of an equality of votes, the chairman of the meeting shall have a second or casting vote.

Voting at Board Meeting

118. The continuing Directors may act notwithstanding any vacancy in the Board; but, if and so long as their number is reduced below the quorum fixed by these Articles and the Act for a meeting of Board, the continuing Directors or Director may act for the purpose of increasing the number of Directors to that fixed for the quorum, or for summoning a General Meeting of the Company, but for no other purpose.

Procedure to be adopted if there is no quorum

119. The Board will appoint a chairman and/or vice-chairman of the Board out of the Directors. The Board will determine the salary and allowances, if any, payable to them. If at any meeting of the Board, the Chairman is not present within 30(thirty) minutes of the time appointed for holding the same, the vice- chairman present shall take the chair, and if both chairman and vice- chairman are not present, the Directors present may choose one of such Directors to be the Chairman of the meeting.

Chairman/Vice-Chairman of Board

120. Subject to the restrictions contained in Section 179 of the Act and provision in these Articles, the Board may delegate any of its powers to Committees of the Board, consisting of such member or members of its Board as it thinks fit and it may from time to time revoke such delegation and discharge any such Committee of the Board either wholly or in part, and either as to persons or purposes, but every Committee of the Board so formed shall in the exercises of the powers so delegated conform to any regulations that may from time to time be imposed on it by the Board.

Directors may appoint Committees

121. Subject to the applicable laws, the quorum for meetings of Committees of the Board would be such as may be decided by the Board, whilst constituting a Committee.

Subject to the provisions of the Act, the participation of the Members of the Committee may be either in person or through video conferencing or audio visual mode or any other permitted mode.

Quorum for meetings of a Committee

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122. 1) A committee of the Board may elect a Chairman of its

meetings unless the Board whilst constituting a committee, has appointed a Chairman of the committee.

2) If no such Chairman is elected, or if at any meeting the Chairman is not present within 15 (fifteen) minutes of the time appointed for holding the meeting, the Members present may choose one of them to be Chairman of the meeting.

Chairman of a Committee

123. 1) Subject to the provisions of the Act and SEBI Listing Regulations, the Chairman of the committee may call, and adjourn the meeting as and when it thinks proper.

Committee proceedings

2) Questions arising at any meeting of a committee shall be

determined by a majority of votes of the Members present, and in case of any equality of votes, the Chairman shall have a second or casting vote.

Voting at Committee

124. All acts done by any meeting of the Board or by a committee thereof or by any person acting as a Director shall, notwithstanding that it shall afterwards be discovered that there was some defect in the appointment or continuance in office of any such Directors or person acting as aforesaid or that they or any of them were disqualified or had vacated office or were not entitled to act as such or that the appointment of any of them had been terminated by virtue of any provisions contained in the Act or in these Articles, be as valid as if every such person had been duly appointed, had duly continued in office, had been qualified, had continued to be a Director , his appointment had not been terminated and he had been entitled to be a Director.

Provided that nothing in this Article shall be deemed to give validity to any act done by a Director after his appointment has been shown to the Company to be invalid or to have terminated.

Validity of Directors’ acts

125. Save as otherwise expressly provided in the Act, a resolution shall be as valid and effectual as if it had been passed at a meeting of the Board or Committee, as the case may be, duly called and constituted if a draft thereof in writing is circulated, together with the necessary papers, if any, to all the Directors or to all the Members of the Committee as the case may be, at their address(s) registered with the Company in India by hand delivery or by post or by courier, or through such electronic means as may be prescribed and has been approved by a majority of the Directors or Members, who are entitled to vote on the resolution.

Resolution by circulation

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Provided that, where not less than one-third of the Directors of the Company for the time being require that resolution under circulation must be decided at the meeting of the Board, the Chairman shall put the resolution to be decided at a meeting of the Board. A resolution of the Board or any committee thereof shall be noted at a subsequent meeting of the Board or the committee, as the case may be, and made part of the minutes of such meeting. The powers of the Board listed in sub-section (3) of Section 179 of the Act read with the Rules shall be exercised only at the meetings of the Board.

MINUTES OF MEETINGS 126. (a) The Board shall in accordance with the provisions of the Act,

cause minutes to be kept of every General Meeting of the Company and of every meeting of the Board or of every committee of the Board.

(b) Any such minutes of any meeting of the Board or of any Committee or of the General Meeting, kept in accordance with the Act, shall be evidence of the matters stated in such minutes.

(c) The minutes book of General Meetings of the Company shall be open to inspection by Members as per the provisions of the Act.

Minutes of the Meetings

MANAGING DIRECTORS AND WHOLETIME DIRECTORS

127. Subject to the provisions of the Act, the Board of Directors by a resolution passed at the meeting of the Board may from time to time appoint one or more of the Directors to the office of managing Director or whole-time Director for such period and on such terms and conditions as the Board may think fit and, subject to the terms of any agreements entered into with him, may revoke such appointment. In making such appointment(s), the Board shall ensure compliance with the requirement of law and shall seek and obtain such approvals as are prescribed by the Act. Further, unless necessitated to comply with the provisions of the Act, the Director so appointed shall not be subject to retire by rotation, but his appointment shall be automatically terminated when he ceases to be a Director.

Appointment of Managing or Whole-time Directors

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Provided, however, that if at any time the number of Directors (including the managing Director or whole-time Director ) as are not subject to retirement by rotation shall exceed one-third of the total number of Directors (excluding independent Directors) for the time being, then such managing Director or whole-time Director or whole-time Directors, as the Board shall from time to time select, shall be appointed as Director(s) liable to retire by rotation to the extent that the Directors not liable to retire by rotation shall not exceed one-third of the total number of Director s (excluding Independent Directors) for the time being.

A whole-time Director or managing Director, who is reappointed as a Director immediately on retirement by rotation, shall continue to hold his office of managing Director or whole-time Director and such re-appointment as such Director shall not be deemed to constitute a break in his appointment as managing Director or whole-time Director.

Provided that no such managing Director or whole-time Director shall be re-appointed earlier than one year before the expiry of his term.

128. The Board may by a resolution passed at a Meeting of the Board,

entrust and confer upon a, managing Director or whole-time Director any of the power of day-to-day management which would not otherwise be exercisable by him upon such terms and conditions and with such restrictions as the Board may think fit, subject always to the superintendence, control and direction of the Board, and the Board may from time to time revoke, withdraw, alter or vary all or any of such powers.

Their powers and duties

CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY

129. Subject to the provisions of the Act,—

(a) A Chief Executive Officer, Chief Financial Officer and

Company Secretary may be appointed by the Board for such term, at such remuneration and upon such conditions as it may think fit; and any Chief Executive Officer, Chief Financial Officer and Company Secretary so appointed may be removed by means of a resolution of the Board; the Board may appoint one or more chief executive officers for its multiple businesses.

(b) A Director may be appointed as Chief Executive Officer, Chief Financial Officer or Company Secretary.

Chief Executive Officer, Chief Financial Officer and Company Secretary

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130. A provision of the Act or these regulations requiring or authorising a thing to be done by a Director and Chief Executive Officer, Chief Financial Officer or Company Secretary shall not be satisfied by its being done by the same person acting both as Director and as, or in place of, Chief Executive Officer, Chief Financial Officer or Company Secretary.

THE SEAL

131. 1) The Board at its option can provide a common Seal for the purposes of the Company and shall have power from time to time to vary or cancel the same and substitute a new Seal in lieu thereof. The Board shall provide for safe custody of the Seal.

Safe custody of the Seal

2) The Seal shall not be affixed to any instrument except by authority of a resolution of the Board or a Committee of the Board authorised by it in that behalf, and except in the presence of at least one Director or Company Secretary or any other person authorised by the Board for the purpose who shall sign every instrument to which the Seal is so affixed in their presence.

Affixing of Seal to be authorised by Board

3) The Company shall also be at liberty to have an Official Seal in accordance with the provisions of Section 22 of the Act, for use in any territory, district or place outside India and such power shall accordingly be vested in the Board or by or under the authority of the Board granted, in favour of any person appointed for the purpose in that territory, district or place outside India.

Use of Seal abroad

DIVIDENDS AND RESERVES

132. The Company in General Meeting may declare dividends, but no dividends shall exceed the amount recommended by the Board by a resolution passed at the meeting of the Board.

Declaration of dividends

133. Subject to the provisions of Section 123 of the Act, the Board may, by a resolution passed at a Meeting of the Board, from time to time pay to the Members such interim dividends as appear to the Board to be justified by the profits earned by the Company.

Payment of interim dividends

36

134. 1) Subject to the provisions of the Act, the Board may, before recommending any dividend, set aside out of the profits of the Company, such sums as it may think proper as reserve or reserves which shall, at the discretion of the Board, be applicable for any of the purposes to which the profits of the Company may be properly applied, including provision for meeting contingencies, or for equalising dividends and pending such application, may, at the like discretion, either be employed in the business of the Company or be invested in such investments (other than shares of the Company) as the Board may from time to time, thinks fit.

Reserves

2) The Board may also carry forward any profits, which it may think prudent not to divide, without setting them aside as a reserve.

Power to carry forward profits

135. 1) Subject to the rights of the persons, if any, holding Shares with special rights as to dividends, all dividends shall be declared and paid according to the amounts paid or credited as paid on the Shares, in respect whereof the dividend is paid.

Dividend related to amount paid-up

2) No amount paid or credited as paid on a Share in advance of calls shall be treated for the purposes of this Article as having been paid on the Share.

Amount paid in advance of calls

3) All dividends shall be apportioned and paid proportionately

to the amounts paid or credited as paid on the Shares during any portion or portions of the period in respect of which the dividend is paid; but if any Share is issued on terms providing that it shall rank for dividend as from a particular date such Share shall rank for dividend accordingly.

Distribution of dividends

136. The Board may deduct from any dividend payable to any Member without his consent all sums of money, if any, presently payable by him to the Company on account of calls or otherwise in relation to the Shares of the Company.

Deduction from dividends

137. No dividend shall be payable except in cash, provided that nothing in the foregoing shall be deemed to prohibit the capitalisation of profits or reserves of the Company for the purpose of issuing fully paid-up bonus Shares or paying up any amount for the time being unpaid on the Shares held by the Members of the Company.

Dividend in cash

138. The Company may retain the dividends payable upon Shares in respect of which any person is, under transmission clause, entitled to become a Member, until such person shall become a Member in respect of such Share.

Power to retain dividend until transmission is effected

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139. Where any difficulty arises in regard to such distribution, the Board may settle the same in such a manner as it thinks fit.

Power of the Board to distribute dividend

140. 1) Any dividend, interest or other monies payable in cash in respect of Shares may be paid by electronic mode or by cheque or warrant sent through the post direct to the registered address of the holder of Shares or, in the case of joint holders, to the registered address of that one of the joint holders who is first named on the Register of Members, or to such person and to such address as the first named holder or joint holders may in writing direct or in case of the shareholder living abroad by permitted means.

Mode of payment of dividend

2) Every such cheque or warrant shall be made payable to the order of the person to whom it is sent.

141. Any one of two or more joint holders of a Share may give effectual receipt for any dividend, bonus or other monies payable in respect of such Share.

Payment in any anyway whatsoever shall be made at the risk of the person entitled to the money paid or to be paid. The Company will not be responsible for a payment which is lost or delayed. The Company will be deemed to having made a payment and received a good discharge for it if a payment using any of the forgoing permissible means is made.

Receipts for dividend, etc. in case of Joint holders

Discharge to Company

142.

143. Notice of any dividend that may have been declared shall be given to the persons entitled to Share therein in the manner mentioned in the Act.

Notice of dividend

144. No dividend shall be payable except out of profits of the Company for the year or any other undistributed profits and no dividend shall carry interest against the Company.

No interest on dividend

145. The Company shall comply with the provisions of Section 123 and 124 of the Act in respect of unclaimed or unpaid dividend.

Unclaimed or unpaid dividend

ACCOUNTS

146. 1) The Board shall from time to time determine whether and to what extent and at what times and places and under what conditions or regulations the accounts and books of the Company, or any of them, shall be open to the inspection of Members not being Directors.

Inspection by members

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147. 2) No Member (not being a Director) shall have any right of inspecting any account or book or document of the Company, except as provided in these Articles or conferred by law or authorised by the Board or by the Company in General Meeting.

Restriction on Inspection by Members

CAPITALISATION OF PROFITS

148. (1) The Company in General Meeting by a resolution may, upon the recommendation of the Board resolve:

a) that it is desirable to capitalise any part of the amount for the time being standing to the credit of any of the Company’s reserve accounts or to the credit of the profit and loss account or otherwise available for distribution; and

b) that such sum be accordingly set free for distribution in the manner specified in clause (2) below amongst the Members, who would have been entitled thereto, if distributed by way of dividend and in the same proportions.

Capitalisation

(2) The sum aforesaid shall not be paid in cash, but shall be applied, subject to the provisions contained in clause (3), either in or towards :

a) paying up any amounts for the time being unpaid on any Shares held by such Members respectively;

b) paying up in full, unissued Shares or Debentures of the Company to be allotted and distributed, credited as fully paid-up to and amongst such Members in the proportions aforesaid; or

c) partly in the way specified in sub-clause (a) in this clause and partly in that specified in sub-clause (b) in this clause.

Mode of payment

(3) A Securities premium account and a capital redemption reserve fund may, for the purposes of these Articles, be applied in the paying up of unissued Shares to be issued to Members of the Company as fully paid bonus shares.

(4) The Board Shall give effect to the resolution passed by the Company in pursuance of these Articles.

149. 1) Whenever such a resolution as aforesaid shall have been passed, the Board shall, subject to compliance with such resolution:

Appropriation and application of undivided profits.

39

a) make all appropriations and applications of the undivided profits resolved to be capitalised thereby, and allotment and issue of fully paid Shares or Debentures if any; and

b) generally do all acts and things required to give effect thereto.

2) The Board shall have full power :

a) to make such provisions by the issue of fractional share certificates or by payment in cash or otherwise as it thinks fit, in the case of Shares or Debentures becoming distributable in fractions, and

b) to authorise any person to enter, on behalf of all the Members entitled thereto into an agreement with the Company providing for the allotment to them respectively, credited as fully paid-up, of any further Shares or Debentures to which they may be entitled upon such capitalisation, or (as the case may require), for the payment by the Company on their behalf by the application thereto of their respective proportion of the profits resolved to be capitalised, of the amounts remaining unpaid on their existing Shares.

3) Any agreement made under such authority shall be effective and binding on all such Members.

Effect of agreement

SECRECY

150. 1) No Member or other person (not being a Director ) shall be entitled to visit or inspect the Company’s work without the permission of the Board of Directors or the Managing Director or Whole-time Director or to require discovery of any information respecting any details of the Company’s business, trading or customers or any matter which is or may be in the nature of a trade secret, history of trade or secret process, or any other matter which may relate to the conduct of the business of the Company or which in the opinion of the Directors will be inexpedient in the interest of the Company to disclose.

Secrecy clause

2) Every Director , manager, auditor, trustee, member of committee, officer, agent, accountant or other person employed in the business of the Company shall if so required by the Board or Managing Director or Whole-time Director , before entering upon his duties, sign a

40

declaration pledging himself to observe a strict secrecy respecting all transactions of the Company with the customers and the state of the accounts with the individuals and the matters relating thereto, and shall by such declarations pledge himself not to reveal any of the matters which, may come to his knowledge in the discharge of his duties except when so required to do by the Board or by any meeting or by a court of law and except so far as may be necessary in order to comply with any of the provisions in these presents contained.

WINDING UP

151. 1) If the Company shall be wound up, whether voluntarily or otherwise, the liquidator may with the sanction of a special resolution of the Company and any other sanction required by the Act, divided amongst the Members in specie or kind, the whole or any part of the assets of the Company, whether they shall consist of property of the same kind or not.

Winding up

2) For the purpose aforesaid, the liquidator may set such values as he deems fair upon any property to be divided as aforesaid and may determine how such division shall be carried out as between the Members of different classes of Members.

Liquidator’s power to fix value and divide property

INDEMNITY AND INSURANCE

152. Subject to the provisions of the Act, every Director , Manager, Chief

Financial Officer, Company Secretary, auditor and other officer of the Company (all of whom are hereinafter referred to as officer) shall be indemnified by the Company, and it shall be the duty of the Directors to pay, all costs, losses and expenses, out of the assets of the Company which any such officer may incur or become liable to by reason of any contract entered into or act or thing done or omitted by him faithfully and reasonably as such officer or in any way in the discharge of his duties, and in particular and so as not to limit the generality of the foregoing provisions against any liability incurred by such officer in defending any proceedings whether civil or criminal in which a judgment is given in his favour or in which he is acquitted or discharged or in connection with any application under Section 463 of the Act in which relief is granted to him by the court or the tribunal. The amount for which such indemnity is provided shall immediately attach as a charge on the property of the Company.

Indemnity

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153. The Company may take and maintain any insurance as the Board may think fit on behalf of its present and/or former Directors, employees and key managerial personnel for indemnifying all or any of them against any liability for any acts in relation to the Company for which they may be liable but have acted honestly and reasonably.

Insurance

154. Subject to the provisions of the Act, no Director , Managing Director or other officer of the Company shall be liable for the acts, receipts, neglects or defaults of any other Directors or Officer, or for any loss or damage arising from the bankruptcy, insolvency or tortuous act of any person, company or corporation, with whom any moneys, Securities or effects shall be entrusted or deposited, or for any loss occasioned by any error of judgment or oversight on his part, or for any other loss or damage or misfortune whatever which shall happen in the execution of the duties of his office or in relation thereto, unless the same was a result of wilful default, negligence, fraud, misfeasance or malfeasance happens through his own dishonesty. An Independent Director , and a non-executive Director not being a promoter or a Key Managerial Personnel, shall be liable only in respect of acts of omission or commission, by the Company which had occurred with his knowledge, attributable through Board processes, and with his consent or connivance or where he has not acted diligently.

Directors and other officers not responsible for acts of others

GENERAL POWERS

155. Wherever in the Act or other applicable laws, it has been provided that the Company shall have any right privilege or authority or that the Company could carry out any transaction only if the Company is so authorized by its Articles, then and in that case, this Article authorizes and empowers the Company to have such rights, privileges or authorities and to carry out such transaction as have been permitted by the Act, without there being any specific Article in that behalf herein provided.

General Powers

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We the several persons whose names and addresses are subscribed hereunder are desirous of being formed into a Company in pursuance of the Articles of Association and we respectively agree to take the number of shares in the Capital of the Company set opposite our respective names :

Name, Father's Name, Address description and Occupation of subscribers

Signature of the subscribers

Numbers of equity shares taken by each subscriber

Signature & Address of the witness

1. Sh. V.M. Aggarwal, Sd/- 10

Sd/

- Sh

ri V

. K

umar

, H

.No.

127

, Ph

ase

IV, S

.A.S

. N

agar

, Se

rvic

e

S/o Late Inderjit Aggarwal, H.No. 144, Sector 18-A Chandigarh. Service

2. Sh. S.K. Jain, Sd/- 10

S/o Sh. D.L. Jain, H.No. 1485, Sec. 22-B, Chandigarh. Service

3. Sh. Ram Lubhaya, Sd/- 10

S/o Sh. Jaggu Ram, H.No. 1602, Sec. 18-D, Chandigarh. Service

4. Sh. P. Sivaram Sd/- 10

S/o Sh. R. Padmanabhan, H.No. 1230, Sector 19-B, Chandigarh. Service

5. Sh. Ashok Chhabra, Sd/- 10

S/o Sh. F.C. Chhabra, H.No. 171, Sec. 36-A, Chandigarh. Service

6. Sh. Chandra Mohan Sd/- 10

S/o Late. Seth Ram Gupta, H. No. 202, Sec. 36-A, Chandigarh. Company Executive

7. Sh. Y.P. Mahajan, Sd/- 10

S/o Late Sh. Amar Nath Mahajan, H.No. 2130, Sector 15-C, Chandigarh. Company Executive

Total number of Shares 70

Documents

smLsmlisuzu.com/Upload/AgmNotice/902bf15f_2ae52738_Voting Result… · (DIN 02704734), Managing Director & CEO, in atAGM case of no profits / inadequate profits 11. Approval for payment